NUPRC Proposes Domestic Crude Swap Deal to Lower Costs and Boost Local Refinery Supply

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has initiated broad consultations with key industry stakeholders on a new domestic crude oil and gas swap arrangement designed to reduce supply costs and guarantee steady feedstock for local refineries.

The proposed initiative aims to streamline compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO). Under the framework, upstream producers located near export terminals can swap supply commitments with inland producers closer to domestic refining facilities. This arrangement eliminates the logistical expense of transporting crude across long distances before netting off the obligations between parties.

NUPRC Commission Chief Executive Oritsemeyiwa Eyesan disclosed the plan during a visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. She noted that while domestic crude deliveries improved significantly reaching 53.7 million barrels between April and June 2026 some local refiners continue to import foreign crude due to high domestic pricing and distribution hurdles.

NMDPRA Chief Executive Rabiu Abdullahi Umar welcomed the initiative, highlighting that pricing remains critical to the operational viability of local refiners. Both regulatory bodies emphasized that establishing strategic petroleum reserves and optimizing supply logistics will be key to strengthening national energy security and driving down fuel production costs.