Domestic refineries in Nigeria received more than 127 million barrels of crude oil and condensate between January and September 2026, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The Commission Chief Executive, Oritsemeyiwa Eyesan, said crude deliveries improved after the regulator intervened in disputes between oil producers and refiners that disrupted supplies in the first quarter of the year.

Speaking at the OTL Africa Downstream Energy Week 2026 in Lagos on Monday, Eyesan, represented by the Assistant Director of Operations, Prosper Omonedo, disclosed that refineries received 53.7 million barrels in the second quarter and 45.1 million barrels in the third quarter.

The deliveries represented supply performance levels of 97.4 per cent and 76.2 per cent, respectively.

The development follows efforts to implement the Domestic Crude Supply Obligation under the Petroleum Industry Act 2021, which provides a framework for supplying locally produced crude to domestic refineries.

However, disagreements over crude prices, payment terms and supply arrangements have continued to affect the availability of feedstock for local refiners.

To address these challenges, the NUPRC is consulting oil producers, refiners and other stakeholders on a proposed domestic crude swap framework.

Under the arrangement, refiners could obtain crude from nearby production or export terminals instead of transporting allocated crude grades over long distances.

Eyesan said the proposal could reduce transportation costs by an estimated $3 to $4 per barrel, potentially lowering expenses for domestic refiners.

Meanwhile, Nigeria’s average crude oil and condensate production rose to 1.717 million barrels per day in September, representing a 2.34 per cent increase from August.

Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month the industry met or exceeded its production quota.

Eyesan attributed the improvement to better maintenance of oil facilities, improved security around evacuation infrastructure, stronger cooperation with operators and efforts to restore shut-in production.

On the 2026 oil licensing round, she said 40 oil blocks would undergo a transparent evaluation process, with published selection criteria and mandatory disclosure of beneficial ownership.

She added that 22 recent licence awardees were expected to contribute at least 250,000 barrels per day to national production within five years.

The commission also pledged to work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to align refinery demand with crude supply plans and improve domestic gas delivery.

Nigeria is seeking to strengthen local refining and reduce its dependence on imported petroleum products through increased domestic crude supply and investments in refining facilities, including the 700,000-barrel-per-day Dangote Petroleum Refinery.

However, the effectiveness of the proposed crude swap framework will depend on its implementation and the cooperation of producers and refiners.