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🇳🇬 Nigeria /Energy & Infrastructure

NUPRC plans crude swap to boost refinery supply

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is consulting stakeholders on a domestic crude oil and gas swap arrangement to reduce supply costs and increase availability for Nigerian refineries.
  • This initiative aims to improve compliance with domestic supply obligations and optimize logistics by allowing producers to swap supplies closer to their respective needs.
  • The NUPRC reported a significant increase in crude deliveries to local refiners in the second quarter of 2026, though some refiners still rely on imports.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is initiating consultations with industry stakeholders to establish a domestic crude oil and gas swap arrangement. This proposed scheme aims to lower supply costs and ensure a more consistent availability of crude for Nigerian refineries.

The Nigerian Upstream Petroleum Regulatory Commission is consulting widely with stakeholders in the industry on the idea of a domestic crude oil and gas swap that would reduce cost and increase availability of products in the country.

— NUPRCThe commission outlines its plan to introduce a domestic crude oil and gas swap arrangement.

NUPRC Chief Executive Oritsemeyiwa Eyesan explained that the swap arrangement would allow crude producers with export facilities to fulfill the obligations of producers located closer to domestic refineries. This would eliminate the need for long-distance transportation of crude within the country. "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 stated in a release by Head of Media and Corporate Communications, Eniola Akinkuotu.

The initiative is expected to enhance compliance with both the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation (DGSO). The NUPRC is working with relevant stakeholders, including the Gas Aggregation Company Nigeria Limited, to finalize the modalities for the scheme. The goal is to optimize existing logistics and supply networks for both producers and refiners.

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.

— Oritsemeyiwa EyesanThe NUPRC Chief Executive explains the operational mechanism of the proposed swap arrangement.

This proposal comes at a time when crude deliveries to domestic refiners have shown improvement. NUPRC data indicates that 53.7 million barrels of crude oil were supplied to local refiners between April and June 2026, achieving 97.4 percent performance under the DCSO for the second quarter. Despite this progress, some refiners continue to rely on imported crude to maintain their operations, highlighting the ongoing challenges in fully meeting domestic refining needs.

Once all the modalities are finalised, there would be improved compliance with the Domestic Crude Supply Obligation and the Domestic Gas Supply Obligation.

— Oritsemeyiwa EyesanEyesan highlights the expected benefits of the swap arrangement in terms of regulatory compliance.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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