Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, reflecting improvements in the implementation of the Domestic Crude Supply Obligation (DCSO).
Also, the federal government has said it is pursuing a more rigorous, commercially sustainable approach to rehabilitate and reposition the four national refineries in Port Harcourt, Warri and Kaduna to prevent them from becoming stranded assets.
In the same vein, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA) has signed and unveiled Revision II of the Nigerian Gas Transportation Network Code (NGTNC), aimed at expanding gas supply access to power, fertiliser plants, shippers and investors.
The NURPC Chief Executive, Mrs. Oritsemeyiwa Eyesan, who spoke yesterday in her speech at the OTL Africa Downstream Energy Week 2026 in Lagos, restated that the commission was also consulting producers, refiners and other stakeholders on a domestic crude swap framework.
Speaking on the theme: ‘’Secure Energy, Shared Prosperity’’, the NUPRC boss, who was represented by the Assistant Director, Operations, Mr. Prosper Omonedo, said the commission’s intervention had improved crude oil deliveries after commercial disagreements between producers and refiners affected supplies in the first quarter.
“We engaged producers and refiners, and in the second and third quarters, 53.7 and 45.1 million barrels of crude oil and condensate were supplied to domestic refineries, an overall performance of 97.4 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. Under Section 109 of the Petroleum Industry Act (PIA) 2021, the NUPRC allocates crude oil to domestic refineries before export.
The NUPRC chief executive said the NUPRC was also consulting producers, refiners and other stakeholders on a domestic crude swap framework.
“Under it, a refiner could receive crude from the nearest suitable production or export point instead of moving an allocated grade over long distances, which could take an estimated three to four dollars off the cost of every barrel,” he added.
On production, Eyesan said Nigeria recorded an average of 1.717 million barrels per day of crude oil and condensate in September, a 2.34 per cent increase over August. Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month the industry met or exceeded its quota.
She attributed the improvement to better asset integrity, enhanced security of evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore shut-in production.
On the 2026 Licensing Round, she said the 40 blocks on offer would be subjected to a transparent evaluation process, with published criteria and mandatory disclosure of beneficial ownership.
The NUPRC boss added that the commission was enforcing the drill-or-drop principle to discourage speculative holding of licences, noting that 22 recent awardees were expected to contribute at least 250,000 barrels per day within five years.
She reaffirmed the commission’s commitment to meeting the Domestic Gas Delivery Obligation and working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to align refinery demand with crude supply planning, ensuring that upstream gains translate into tangible benefits for households, industries and power generation.
At the event, the federal government said that it was pursuing a more rigorous, commercially sustainable approach to rehabilitate and reposition the four national refineries in Port Harcourt, Warri and Kaduna to prevent them from becoming stranded assets.
Permanent Secretary, Federal Ministry of Petroleum Resources, Mrs Patience Oyekunle, in her remarks, said the government remained committed to ensuring existing national refining assets run by the Nigerian National Petroleum Company Limited (NNPC) were not lost, supported by technical assessment, stronger partnerships and improved operational discipline.
“At the same time, the government remains committed to ensuring that existing national refining assets are not allowed to become stranded investments. We are pursuing a more rigorous, commercially sustainable approach to the rehabilitation and repositioning of our refineries, supported by technical assessment, stronger partnerships and improved operational discipline,” she said.
She said the 20th anniversary of OTL was a testament to resilience and relevance, commending the platform for bringing government, investors, operators and regulators together.
The government noted that Nigeria is transforming from import dependence to domestic refining, private investment and regional competitiveness under the Petroleum Industry Act (PIA).
“Today, we are beginning to see the results. Nigeria’s crude oil production has been strengthened significantly,” she explained.
She said Nigeria has maintained its compliance with the Organisation of Petroleum Exporting Countries (OPEC) quota for the fourth consecutive month, owing to the rise in the nation’s crude oil production as shown by October output which surpassed 1.7 million barrels per day including condensates.
She said increasing production was only one part, with greater emphasis on value addition at home through refining, petrochemicals, gas processing and manufacturing.
“The emergence of large-scale private refining capacity represents an important turning point. The Dangote Refinery has reached its 650,000 barrels-per-day nameplate capacity, strengthening Nigeria’s prospects of becoming a net exporter of refined petroleum products,” the government said.
On gas, the federal government said Nigeria with over 215 trillion cubic feet of proven reserves must move from resource-rich to value-creating economy, citing the Gas Master Plan 2026 targeting 10 billion standard cubic feet per day by 2027 and 12BCF/d by 2030.
“Gas will power industries, support electricity generation, expand CNG and LPG utilisation, strengthen LNG exports and provide feedstock for petrochemicals,” she said.
She warned that the era of extracting value without building value was changing, with expectations on local content, technology and host-community development.
On its part, the NMDPRA said the new Network Code will deepen domestic gas utilisation and guarantee open, fair access
Authority Chief Executive, Rabiu Umar, who signed and unveiled the code with partners comprising power generation plants, fertiliser plants, shippers and investors at the OTL opening, said the code is the rulebook for shared pipelines.
“The Network Code basically is the rulebook for gas transportation. As we know, there’s one pipeline that different producers put their gas into. And for there to be equity, there needs to be a code, or if you like, rules of engagement on how you put your gas inside, how the gas is measured, and how you nominate gas,” Umar said.
“The pipelines deliver their full value only when access to them is open and fair. It is therefore a pleasure to announce that the Authority has officially launched revision 2 of the Nigerian Gas Transportation Network Code,” he explained.
Umar said about three-fifths of gas processed in September went to power plants, factories, NLNG and West African Gas Pipeline, while cooking gas demand outstrips supply. He said the Obe-Obiafu-Obrikon (OB3), the Escravos-Lagos Pipeline System (ELPS) midline compressor and the Ajaokuta-Kaduna-Kano (AKK) pipeline at over 80 per cent completion will double transport capacity from 2.2 to 4.4 BCF/d, linking the south to north.
“Since Revision I, more shippers have come onto the network, and the imbalance on the Western network has fallen by about 30 per cent Revision II builds on these gains,” he said, noting clearer provisions on Shrinkage Factor and initial rules for Trans-Saharan and Trans-African pipelines.
On downstream stability, Umar said three in four litres of petrol last month were refined domestically compared to over half imported a year ago, showing energy security built at home.
Although, he noted that much supply still came from one large refinery (Dangote Refinery) above nameplate in September, requiring diversity via modular and state refineries and competitive imports on merit-based licences.
Umar disclosed that NMDPRA is in advanced talks with NNPC to pilot strategic stock at National Pipeline and Storage Company Limited (NPSC) depots in Ibadan, Enugu and Suleja to cushion against external shocks, after eight months of Gulf war pushing crude to $100.
He announced the first of nine fuel laboratories launched recently in Port Harcourt, two more by year-end, all nine by second half 2027, in partnership with Bureau Veritas and Ace Energy and Power Solutions towards a National Reference Laboratory.
Chairman of OTL Africa Advisory Board, Mr Adetunji Oyebanji, in his welcome address, said 20 years of OTL mirrors Africa’s downstream evolution from securing imports and managing administered prices to shaping own supply arrangements, with private refining changing possibilities.
“When OTL began in 2007, much of Africa’s downstream discussion centred on securing imports. Those concerns have not disappeared. But the continent’s capacity to shape its own supply arrangements has strengthened,” Oyebanji said, citing Ghana’s 2015 price liberalisation, Dangote refinery, Kenya’s Mombasa-Nairobi pipeline, Egypt’s Mostorod upgrade, South Africa’s Lesedi terminal and Angola’s Cabinda refinery.
He warned of Middle East conflict, shipping route insecurity and Russian supply disruptions still pressuring diesel availability and freight costs, requiring dependable feedstock, efficient operations and clear rules to sustain confidence.
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