The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is consulting stakeholders on a proposed domestic crude oil and gas swap arrangement to cut costs and improve product availability. Commission Chief Executive Oritsemeyiwa Eyesan disclosed the initiative during a visit to the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) in Abuja, stating that finalising the framework could enhance compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation. The plan, still in early discussion, would allow operators with export access to swap crude with those nearer domestic refineries, reducing transportation burdens through a netting mechanism.
Between April and June 2026, 53.7 million barrels of crude oil were delivered to local refiners, achieving 97.4 per cent compliance for the second quarter. Despite this improvement, crude importation continues. Eyesan said the swap model, once implemented, would be coordinated with the Gas Aggregation Company Nigeria Limited (GACN). She also pledged deeper collaboration with the NMDPRA to support sector efficiency.
NMDPRA Chief Executive Rabiu Umar welcomed the proposal and commended NUPRC for the successful 2025 licensing round and improved enforcement of domestic crude supply rules. He noted that while the Petroleum Industry Act supports willing buyer-willing seller transactions, pricing remains a challenge. The NMDPRA expressed support for establishing strategic reserves to strengthen energy security and stabilise prices.
The NUPRC is proposing a swap system to meet domestic supply obligations even as crude imports continue. With 53.7 million barrels supplied locally in Q2 2026, the persistence of imports raises questions about the definition and enforcement of domestic supply. The success of the swap idea will depend on transparent pricing and clear rules for what counts as fulfilled obligation.
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