The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed this on Monday, October 26, at the OTL Africa Downstream Energy Week 2026 in Lagos, themed “Secure Energy, Shared Prosperity.” She was represented at the event by the Assistant Director of Operations, Prosper Omonedo.
Eyesan said commercial disagreements between crude oil producers and domestic refiners had disrupted supplies during the first quarter of the year, prompting the Commission to engage both parties to improve deliveries.
According to her, domestic refineries received 53.7 million barrels of crude oil and condensate in the second quarter and 45.1 million barrels in the third quarter, with reported supply performance rates of 97.4 per cent and 76.2 per cent, respectively.
“From Q1-Q3 of 2026, more than 127 million barrels of Nigerian crude went to Nigerian refineries,” she said.
NUPRC Considers Crude Swap Framework to Cut Costs
Under Section 109 of the Petroleum Industry Act 2021, the NUPRC is responsible for implementing the Domestic Crude Supply Obligation, which prioritises crude supply to domestic refineries under the law.
Eyesan said the Commission was consulting producers, refiners and other industry stakeholders on a proposed domestic crude swap framework designed to reduce transportation costs and improve supply efficiency.
Under the proposed arrangement, a refinery could receive crude from the nearest suitable production or export point instead of transporting an allocated grade over long distances.
The Commission estimates that the framework could reduce costs by between $3 and $4 per barrel, potentially easing some of the logistical expenses associated with supplying domestic refineries.
Nigeria’s Oil Production Rises in September
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, representing a 2.34 per cent increase from August.
Crude oil alone averaged 1.53 million barrels per day, marking the fifth consecutive month the industry met or exceeded its production quota, according to the NUPRC.
She attributed the improvement to better asset integrity, enhanced security around evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore previously shut-in production.
The Commission said these measures were helping to improve operational performance and support Nigeria’s efforts to sustain production growth.
NUPRC Promises Transparent 2026 Licensing Round
On the 2026 oil and gas licensing round, Eyesan said the 40 blocks on offer would undergo a transparent evaluation process based on published criteria, with mandatory disclosure of beneficial ownership.
She also reaffirmed the Commission’s enforcement of the drill-or-drop principle, which is intended to discourage companies from holding petroleum licences speculatively without developing the assets.
According to Eyesan, 22 recent awardees were expected to contribute at least 250,000 barrels per day to national production within five years.
The NUPRC chief executive further reiterated 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 coordination was necessary to ensure that gains in upstream production translate into tangible benefits for households, industries and electricity generation.
