Domestic refineries in Nigeria received more than 127 million barrels of crude oil and condensate between January and September 2026, according to the Nigerian Upstream Petroleum Regulatory
Commission (NUPRC).
The development reflects improvements in the implementation of the Domestic Crude Supply Obligation (DCSO), which requires oil producers to prioritise local refineries in crude oil supply.
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this on Monday, October 26, 2026, while delivering a speech at the OTL Africa Downstream Energy Week 2026 in Lagos.
Eyesan, who was represented by the Assistant Director of Operations, Mr. Prosper Omonedo, said the commission had taken steps to improve crude oil deliveries following disagreements between oil producers and refinery operators that disrupted supplies in the first quarter of the year.
According to her, engagements between the commission, producers and refiners helped improve deliveries in the second and third quarters.
She explained that domestic refineries received 53.7 million barrels of crude oil and condensate in the second quarter, representing 97.4 per cent performance, while 45.1 million barrels were supplied in the third quarter, representing 76.2 per cent performance.
“From Q1–Q3 of 2026, more than 127 million barrels of Nigerian crude went to Nigerian refineries,” she stated.
Under Section 109 of the Petroleum Industry Act 2021, the NUPRC is responsible for ensuring that domestic refineries receive crude oil supplies before producers export their products.
The commission said it was continuing to engage stakeholders to address supply challenges and improve the availability of crude oil for local refining.
NUPRC Plans Crude Oil Swap Framework
Eyesan also disclosed that the commission was consulting oil producers, refiners and other stakeholders on a proposed domestic crude oil swap framework aimed at reducing transportation costs and improving supply efficiency.
Under the proposed arrangement, refinery operators could receive crude oil from the nearest suitable production or export terminal instead of transporting an allocated crude grade over long distances.
According to the commission, the arrangement could reduce transportation costs by an estimated $3 to $4 per barrel, potentially lowering refining expenses and improving the competitiveness of locally refined petroleum products.
The framework is expected to address some of the logistical challenges affecting crude oil deliveries to domestic refineries.
Nigeria’s Oil Production Records Improvement
On crude oil production, Eyesan said Nigeria recorded an average output of 1.717 million barrels per day of crude oil and condensate in September 2026.
This represented a 2.34 per cent increase compared with the previous month.
She added that crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month the industry met or exceeded its production quota.
The NUPRC chief attributed the improvement to better maintenance of oil production facilities, enhanced security around crude oil transportation infrastructure, stronger cooperation with operators and sustained regulatory efforts to restore previously shut-in production.
She said the commission would continue working with industry operators to sustain the production gains and strengthen Nigeria’s position in the global oil market.Buy Maps
NUPRC Promises Transparent Licensing Round
Speaking on the 2026 oil licensing round, Eyesan said the 40 oil blocks being offered to investors would undergo a transparent evaluation process.
She explained that the commission had established published evaluation criteria and mandatory disclosure of beneficial ownership to promote accountability and discourage the misuse of oil licences.
The NUPRC also reaffirmed its commitment to enforcing the drill-or-drop principle, which is designed to discourage companies from holding oil licences for speculative purposes without developing the assets.
Under the principle, licence holders are expected to carry out the required exploration and development activities within the stipulated period or risk losing their licences.
Eyesan noted that 22 recent awardees were expected to contribute at least 250,000 barrels per day to Nigeria’s oil production within five years.
The commission said the licensing process was part of broader efforts to attract investment, increase production and ensure that oil assets are developed for the country’s economic benefit.
Commission Reaffirms Commitment To Domestic Gas Supply
The NUPRC chief further reaffirmed the commission’s commitment to meeting the Domestic Gas Delivery Obligation and improving coordination across Nigeria’s petroleum industry.
She said the commission would continue working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to align refinery demand with crude oil supply planning.
According to her, effective coordination between upstream producers, refinery operators and regulatory agencies would help ensure that improvements in oil production translate into tangible benefits for households, businesses and electricity generation.
The commission maintained that strengthening domestic crude supply, reducing transportation costs and increasing production would support the development of Nigeria’s refining industry and improve energy security.Buy Maps
The latest figures come amid ongoing efforts to expand local refining capacity, reduce dependence on imported petroleum products and ensure that a greater share of Nigeria’s crude oil resources supports domestic economic aactivities
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