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Nigerian refineries received more than 127 million barrels of crude oil and condensate between January and September 2026, according to the NUPRC.
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Regulator proposes a crude swap framework that could cut transportation costs by $3–$4 per barrel.
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Nigeria’s crude oil and condensate production averaged 1.717 million barrels per day in September, up 2.34 percent from August.
October 27, (THEWILL) – Domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, as the Nigerian Upstream Petroleum Regulatory Commission intensified efforts to resolve supply disputes between producers and refiners.
The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed this at the OTL Africa Downstream Energy Week 2026 in Lagos on Monday, in a speech delivered by the Assistant Director, Operations, Prosper Omonedo. The commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, announced this in a statement.
Eyesan said commercial disagreements had disrupted crude deliveries in the first quarter, but interventions by the regulator improved supply in the following quarters.
“We engaged producers and refiners, and in the second and third quarters, 53.7 and 45.1 million barrels of crude oil and condensate were supplied to domestic refineries, an overall performance of 97.4 and 76.2 percent, respectively,” she said.
The deliveries highlight efforts to implement the Domestic Crude Supply Obligation established under the Petroleum Industry Act 2021, which provides a framework for supplying crude to domestic refineries.
Despite the increased deliveries, disputes over pricing and supply arrangements remain a challenge for refiners seeking access to Nigerian crude.
Crude swap proposal targets logistics costs
To reduce the cost of moving crude over long distances, the NUPRC is consulting producers, refiners and other stakeholders on a domestic crude swap framework.
Under the proposed arrangement, a refinery could receive crude from the nearest suitable production or export point instead of transporting an allocated grade over a longer distance.
Eyesan said the arrangement could reduce transportation costs by an estimated $3–$4 per barrel, potentially improving the economics of domestic refining.
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The potential savings would depend on the framework’s implementation, the availability of suitable crude grades and the participation of producers and refiners.
The proposal comes as Nigeria seeks to increase domestic refining and reduce dependence on imported petroleum products. Reliable crude supply at commercially viable prices remains critical to achieving those objectives.
Production rises as licensing round advances
Eyesan said Nigeria’s crude oil and condensate production averaged 1.717 million barrels per day in September, an increase of 2.34 per cent from August.
Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month in which the industry met or exceeded its quota, according to the regulator.
She attributed the improvement to better asset integrity, stronger security around evacuation infrastructure, collaboration with operators and efforts to restore shut-in production.
On the 2026 oil licensing round, Eyesan said the 40 blocks on offer would undergo a transparent evaluation process based on published criteria, with mandatory disclosure of beneficial ownership.
She also reaffirmed the commission’s enforcement of the “drill-or-drop” principle, under which licence holders are expected to develop their assets or risk losing them.
According to her, 22 recent awardees are expected to contribute at least 250,000 barrels per day within five years.
Eyesan said the commission was also working to meet the Domestic Gas Delivery Obligation and collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to align refinery demand with crude supply planning.
She said the regulator’s priority was to ensure that improvements in upstream production translated into tangible benefits for households, industries and power generation
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
