LAGOS, Oct 27 – Nigerian refineries received more than 127 million barrels of locally produced crude oil and condensate between January and September 2026, as deliveries strengthened following regulatory intervention, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said on Monday.
The improvement follows significant shortfalls earlier in the year, when crude producers supplied domestic refineries with less than half of the volumes allocated under Nigeria’s Domestic Crude Supply Obligation (DCSO) during the first quarter. Regulatory data released in May showed that pricing disputes continued to constrain deliveries.
NUPRC Chief Executive Oritsemeyiwa Eyesan said supply under the domestic crude framework improved during the second and third quarters, indicating stronger compliance with arrangements intended to prioritise local refining.
Under Nigeria’s Petroleum Industry Act, the regulator allocates crude oil to domestic refiners before exports. The policy is intended to improve access to locally produced feedstock for Nigerian refineries, although implementation has faced challenges involving pricing and the commercial terms of supply.
The delivery figures come as Nigeria seeks to strengthen domestic refining capacity and reduce its reliance on imported petroleum products. Consistent access to crude is a critical factor in enabling local refineries to operate at higher utilisation rates and convert domestic production into refined fuels.
Nigeria’s crude production rises in September
Nigeria produced an average of 1.717 million barrels per day (bpd) of crude oil and condensate in September, up 2.34% from August, Eyesan said in Lagos.
The production increase provides additional context for the domestic supply outlook, although total national output does not automatically translate into greater deliveries to local refineries. Allocation arrangements, commercial negotiations, transportation and the suitability of available crude grades also influence the volumes refiners receive.
To address some of these constraints, NUPRC is consulting oil producers, refiners and other industry stakeholders on a proposed domestic crude swap framework.
The arrangement would allow refiners to receive crude from the nearest suitable production or export point rather than transport their allocated grades over longer distances. The proposed system could reduce logistical complexity and improve the efficiency of crude deliveries, depending on how the framework is implemented.
Regulators seek closer alignment of supply and demand
NUPRC said it would continue working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to align refinery demand with crude supply planning and meet domestic gas delivery obligations.
Coordination between the upstream and downstream regulators is intended to improve planning across the petroleum value chain, linking production and allocation decisions with the operational requirements of domestic refineries.
The receipt of more than 127 million barrels in the first nine months of 2026 signals an improvement in domestic crude deliveries. However, sustained progress will depend on resolving pricing disputes, improving logistics and ensuring that allocated volumes translate into actual supplies.
For Nigeria’s refining sector, the key measure will be whether improved access to domestic crude can be maintained consistently enough to support refinery operations and reduce exposure to imported fuel supplies.
