NUPRC Proposes Crude Swap to Enhance Refinery Supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has begun consultations with industry stakeholders regarding a domestic crude oil and gas swap arrangement. This initiative aims to cut supply costs and ensure greater availability of crude for Nigerian refineries.

NUPRC Chief Executive Oritsemeyiwa Eyesan announced this during a visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja. The proposed swap arrangement would allow crude producers with export facilities to fulfill obligations closer to domestic refineries, thus eliminating unnecessary long-distance transportation of crude.

The NUPRC is working with stakeholders, including the Gas Aggregation Company Nigeria Limited, to finalize the modalities for this scheme. NUPRC data indicates that 53.7 million barrels of crude oil were supplied to local refiners from April to June 2026, achieving 97.4% compliance with the Domestic Crude Supply Obligation.

Despite this, some refiners still rely on imported crude due to high local prices, prompting the need for more efficient domestic crude allocation mechanisms.