The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is introducing a new crude oil trading platform.
The platform aims to increase the supply of local crude to Nigerian refineries.
It will bring producers, refiners, regulators and oil traders together on one system. The system will support crude allocation, pricing, trading and delivery.
The move comes as Nigeria works to expand domestic refining. It also seeks to reduce the country’s reliance on imported crude and refined petroleum products.
The automated platform will give industry players a direct channel for crude oil transactions.
Producers and refiners have often faced disagreements over crude availability, pricing and delivery. These challenges have affected domestic crude supplies under the Domestic Crude Supply Obligation (DCSO).
The new system could help reduce some of these bottlenecks.
Producers, refiners, regulators and traders will be able to take part in live trading. The platform is expected to improve transparency and coordination in the crude market.
The development comes as Nigeria’s refining capacity continues to grow.
The Dangote Refinery remains a major part of this expansion.
Industry data showed that the refinery required about 63 million barrels of crude in the second quarter of 2026.
Producers offered about 68.1 million barrels during the period.
However, the refinery accepted 52.6 million barrels.
This represented about 78 per cent of the crude offered to the refinery.
Devakumar Edwin, Group Vice President, Oil and Gas and Fertiliser at Dangote Industries Limited, said the refinery remained ready to buy Nigerian crude.
He said the crude must come in sufficient volumes. He also stressed the need for competitive market prices.
NUPRC data showed an improvement in crude supplies to local refineries.
Domestic refineries received 53.7 million barrels of crude between April and June 2026.
The figure represented 97.4 per cent compliance with the Domestic Crude Supply Obligation during the second quarter.
Despite the improvement, some local refiners still import crude.
Supply challenges remain in areas such as crude availability, quality, pricing and logistics.
NUPRC is now exploring additional measures to improve domestic crude supply.
The commission is also consulting with industry stakeholders on a proposed crude oil swap arrangement.
The plan could allow producers to exchange their domestic supply obligations.
The arrangement would consider the location of crude and the location of refineries.
This could reduce the cost of moving crude over long distances.
For example, a producer could swap its obligation with another producer whose crude is closer to a domestic refinery.
The companies could then settle the difference through a netting arrangement.
NUPRC said the system could improve DCSO compliance. It could also reduce logistics costs.
The push for more local crude supply supports Nigeria’s wider refining goals.
The government wants more crude processed within the country.
More domestic refining could reduce the need for imported petroleum products.
The Crude Oil Refinery-Owners Association of Nigeria (CORAN) has also identified crude availability as a major challenge for refinery operators.
CORAN President Momoh Jimah Oyarekhua said local refineries are supplying more products to the domestic market.
He also expressed optimism about improved cooperation between regulators and producers.
Reliable crude supplies remain critical to Nigeria’s refining industry.
Refineries need enough crude to operate efficiently.
Competitive crude prices are also important for sustainable operations.
Better crude supply could allow refineries to operate closer to capacity. It could increase local production of petroleum products.
It may also reduce Nigeria’s dependence on imports.
The new platform could improve transparency in crude trading. It could also help producers and refiners coordinate more effectively.
The NUPRC initiative is therefore another step toward connecting Nigeria’s crude production with its growing domestic refining capacity.
