NUPRC Plans Crude Swap To Boost Local Refineries, Cut Costs
…says 53.7m barrels supplied to local refiners in Q2
…targets improved compliance with domestic supply obligations
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on Friday, said it was working on a crude oil and gas swap arrangement aimed at reducing supply costs and improving the availability of feedstock to domestic refineries.
The Commission Chief Executive, Mrs Oritsemeyiwa Eyesan, disclosed this during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
Eyesan said the proposed arrangement was part of ongoing consultations with industry stakeholders on ways to deepen domestic supply and improve compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation.
She explained that the proposed swap would enable producers and offtakers to meet their domestic supply obligations without unnecessarily transporting crude across long distances.
According to her, where one producer has an obligation close to an export facility while another has an obligation close to an inland domestic offtaker, the parties could agree to swap their supply positions and subsequently net off the transactions.
She said: “How the swap works is that I have an obligation somewhere and I am close to an export facility. Somebody else has an obligation inland, and his own facility is close to a domestic offtaker.
“So, instead of trying to move from one end to the other, we just agree on a swap arrangement, and there is a mechanism for them netting off.”
Eyesan, in a statement signed by the Head, Media and Corporate Communications at the Commission, Eniola Akinkuotu, however, said discussions on the crude oil component of the proposed arrangement were still at an early stage.
She said the initiative, once finalised, would improve compliance with both the domestic crude and gas supply obligations, with the gas component to be coordinated with the Gas Aggregation Company Nigeria Limited (GACN).
The NUPRC boss said the Commission was also committed to deepening collaboration with the NMDPRA in the interest of Nigeria’s petroleum industry.
Latest NUPRC data showed that domestic crude supply to local refiners recorded a significant improvement in the second quarter of 2026, with 53.7 million barrels supplied between April and June.
The volume represented an overall performance of 97.4 per cent for the quarter.
Despite the improvement, however, importation of crude oil into the country persists, prompting the Commission to continue discussions with stakeholders on measures to strengthen domestic supply.
Speaking on the development, the NMDPRA Chief Executive, Mallam Rabiu Umar, commended NUPRC for the improvement in enforcement of domestic crude supply to local refiners.
Umar also congratulated the Commission on what he described as a seamless and credible 2025 licensing round.
He noted that although the Petroleum Industry Act provides for transactions on a willing-buyer, willing-seller basis, pricing remained a major factor affecting transactions in the sector.
The NMDPRA boss therefore expressed support for the creation of strategic petroleum reserves, saying the initiative would strengthen Nigeria’s energy security and contribute to price stability.
The proposed crude swap arrangement is expected to complement existing domestic supply mechanisms by reducing unnecessary transportation of crude and improving the efficiency of supply to local refiners.
