Nigeria’s upstream regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has advised local refinery operators to pursue ownership of oil blocks as a strategic response to persistent crude supply challenges affecting domestic refining capacity.
The Commission Chief Executive, Oritsemeyiwa Eyesan, made the recommendation during a meeting with members of the Crude Oil Refinery Owners Association of Nigeria at the commission’s headquarters in Abuja. The engagement focused on strengthening Nigeria’s refining ecosystem and ensuring more reliable access to feedstock.
According to details shared by CORAN spokesperson Eche Idoko, the regulator emphasised that participation in upstream asset ownership would allow refiners to secure more stable and commercially viable crude supply arrangements, while also expanding indigenous involvement across the petroleum value chain.
Eyesan maintained that Nigeria has sufficient crude resources to meet domestic refining requirements and reiterated the commission’s commitment to policies that promote local value addition within the industry.
In addition to upstream participation, the regulator encouraged refiners to adopt long-term crude supply contracts with producers. Such arrangements, she noted, would help improve feedstock reliability, enhance operational planning, and provide greater pricing stability.
However, the commission acknowledged that infrastructure constraints continue to hinder efficient crude delivery. Key challenges identified include limited pipeline networks, evacuation bottlenecks, storage limitations, and gaps in marine logistics, all of which require coordinated investment and industry collaboration.
Members of CORAN welcomed the regulator’s ongoing reforms and support for domestic refining, but stressed the importance of effective implementation of supply frameworks to ensure that allocated crude volumes are consistently delivered to local plants.
Industry stakeholders continue to highlight that improved access to crude feedstock remains central to reducing Nigeria’s reliance on imported petroleum products, strengthening energy security, conserving foreign exchange, and driving job creation through expanded refining activity.
The meeting forms part of ongoing consultations between regulators and private refinery operators aimed at improving alignment across Nigeria’s upstream and downstream segments.