Nigeria increases crude oil supply to domestic refineries
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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported that domestic refineries received over 127 million barrels of Nigerian crude oil and condensate between January and September 2026.
This increase follows improved implementation of the Domestic Crude Supply Obligation, which requires the commission to allocate crude oil to local refineries before allowing exports under the Petroleum Industry Act. The federal government plans to rehabilitate and reposition four national refineries in Port Harcourt, Warri, and Kaduna.
Permanent Secretary Mrs Patience Oyekunle stated that the government aims to use technical assessments and stronger partnerships to ensure these assets remain commercially viable. The government also noted that the Dangote Refinery reached its 650,000 barrels-per-day capacity, helping Nigeria move toward becoming a net exporter of refined products. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) launched Revision II of the Nigerian Gas Transportation Network Code.
Chief Executive Rabiu Umar explained that this new rulebook ensures fair and open access to shared pipelines for power plants, fertiliser plants, and investors. The NMDPRA also plans to establish nine fuel laboratories across the country by the second half of 2027 to create a national reference system. The NUPRC is currently consulting with producers and refiners on a domestic crude swap framework.
This system would allow refiners to receive crude from the nearest suitable production or export points, which could reduce transportation costs by an estimated three to four dollars per barrel.
