Nigeria’s domestic refineries received more than 127 million barrels of 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, attributing improved deliveries to regulatory interventions following commercial disagreements that disrupted crude supplies in the first quarter.
According to Eyesan, domestic refineries received 53.7 million barrels in the second quarter and 45.1 million barrels in the third quarter, representing supply performance of 97.4 per cent and 76.2 per cent, respectively.
She delivered the remarks through the Assistant Director, Operations, Prosper Omonedo. The commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, announced the development in a statement.
“From Q1–Q3 of 2026, more than 127 million barrels of Nigerian crude went to Nigerian refineries,” Eyesan said.
The deliveries form part of the NUPRC’s efforts to implement the Domestic Crude Supply Obligation under the Petroleum Industry Act 2021, which establishes a framework for supplying crude oil to domestic refineries.
Despite the improved deliveries, commercial disagreements over crude pricing, payment terms and supply arrangements have continued to challenge refiners seeking access to locally produced crude.
To address some of these constraints, the NUPRC is consulting producers, refiners and other industry stakeholders on a proposed domestic crude swap framework aimed at reducing transportation costs.
Under the proposed arrangement, refiners could receive suitable crude from the nearest production or export point rather than transport an allocated grade over longer distances.
Eyesan said the framework could reduce transportation costs by an estimated $3 to $4 per barrel, potentially improving the economics of domestic refining.
“Under it, a refiner could receive crude from the nearest suitable production or export point instead of moving an allocated grade over long distances, which could take an estimated three to four dollars off the cost of every barrel,” she said.
The potential savings would depend on the framework’s design, the availability of suitable crude grades and the willingness of producers and refiners to participate. If effectively implemented, the arrangement could ease logistical constraints and improve the commercial viability of processing crude locally.
Eyesan also disclosed that Nigeria’s average crude oil and condensate production rose to 1.717 million barrels per day in September 2026, up 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 production quota.
She attributed the improvement to stronger asset integrity, better security around evacuation infrastructure, closer collaboration with operators and sustained regulatory efforts to restore shut-in production.
The commission is also pursuing measures to encourage investment in upstream assets. On the 2026 oil licensing round, Eyesan said the 40 blocks on offer would undergo a transparent evaluation process based on published criteria and mandatory disclosure of beneficial ownership.
She added that the commission was enforcing the “drill-or-drop” principle to discourage speculative ownership of oil licences. Under the approach, licence holders are expected to develop their assets or risk losing them.
According to Eyesan, 22 recent awardees are expected to contribute at least 250,000 barrels per day within five years.
The anticipated output increase would support Nigeria’s efforts to strengthen upstream production, although actual gains will depend on investment, project execution, infrastructure and the pace of field development.
Eyesan reaffirmed the commission’s commitment to meeting the Domestic Gas Delivery Obligation and working 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.
Nigeria has been working to expand domestic refining capacity and reduce dependence on imported petroleum products. The 700,000-barrel-per-day Dangote Petroleum Refinery, alongside other private refineries, has increased the importance of reliable crude supply to local processors.
However, the supply of more than 127 million barrels to domestic refineries during the first nine months of 2026 does not, by itself, establish how much crude each refinery received or the extent to which individual facilities operated at capacity.
For the downstream sector, the central issue remains whether improved crude deliveries and lower logistics costs can support consistent refinery operations and increase the availability of locally refined products. The proposed crude swap framework could help address some supply constraints, but its impact will depend on implementation and whether it resolves the commercial and logistical difficulties facing producers and refiners.