The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has advised local refinery operators to consider acquiring oil blocks as a long-term strategy to secure steady crude oil supply and reduce production challenges in the country’s refining sector.
The commission’s Chief Executive, Oritsemeyiwa Eyesan, made the recommendation during a meeting with members of the Crude Oil Refinery Owners Association of Nigeria (CORAN) in Abuja. The discussion focused on strengthening domestic refining operations and improving coordination between regulators and private investors.
Eyesan noted that allowing Nigerian refiners to participate in upstream oil production would help create more reliable supply chains while deepening local involvement across the petroleum industry. She also maintained that the country has sufficient crude reserves to support both domestic consumption and refining activities if properly managed.
In addition, she encouraged refinery operators to establish long-term supply agreements with crude producers. According to her, such arrangements would improve planning, stabilize pricing, and ensure consistent access to feedstock for local refineries.
She, however, acknowledged that infrastructure constraints remain a major challenge. Issues such as weak pipeline networks, storage limitations, transport bottlenecks, and marine logistics difficulties continue to affect efficient crude delivery and require urgent attention and investment.
CORAN representatives welcomed the regulator’s position, commending ongoing reforms in the oil sector. They emphasized the need for effective implementation of policies that guarantee reliable crude supply to domestic refineries, describing it as essential for reducing dependence on imported fuel and strengthening Nigeria’s energy security.
Stakeholders in the sector have consistently argued that improving access to crude for local refineries will help conserve foreign exchange, boost industrial growth, and create more employment opportunities within the energy value chain.
The engagement forms part of continued efforts by regulators and private operators to expand Nigeria’s refining capacity and enhance the performance of the downstream petroleum industry.
