Nigeria’s domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026 as the Federal Government intensifies efforts to strengthen local refining and reduce dependence on imported petroleum products
The Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan, disclosed this at the 20th anniversary edition of OTL Africa Downstream Energy Week in Lagos on Monday.
NUPRC is 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 1717 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
Meanwhile, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Rabiu Abdullahi Umar, said locally refined petrol now accounted for three out of every four litres consumed in Nigeria.
He described the development as a major shift for a country that had historically depended heavily on imported petroleum products
However, Umar disclosed that petrol consumption exceeded supply in September, with daily consumption estimated at 444 million litres against supply of 38.7 million litres. The shortfall was covered from existing stocks.
To guard against future disruptions, he said the Authority was targeting sufficient petroleum product stocks to cover between 30 and 45 days of national demand
Umar also acknowledged that Nigeria lacked reliable data on actual fuel consumption, despite decades of petroleum market operations
“No consumption data yet We are working on this because up till now no data to show that this fuel station supplied this volume, that supplied that volume,” he said.
He explained that the NMDPRA was working with an information technology firm to develop a system capable of tracking distribution and establishing more reliable consumption figures
As part of efforts to improve transparency, the Authority was reviewing internal licences and had signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission
Umar also disclosed that seven petroleum product testing laboratories had been launched in Port Harcourt, with two additional facilities expected before the end of the year, bringing the total to nine
He said the Authority had also launched the second revision of the Gas Transportation Network Code to strengthen the framework governing gas transportation infrastructure
Speaking at the event, President Bola Tinubu said Nigeria’s energy resources could drive prosperity across Africa, reaffirming his administration’s ambition to support the emergence of a regional energy hub
The president whose message was delivered by the Permanent Secretary, Ministry of Petroleum Resources, Mrs Patience Oyekunle, emphasised the need for regional cooperation and an investment-driven, environmentally responsible energy sector.
Lagos State Governor Babajide Sanwo-Olu said energy security was fundamental to economic security, warning that high and unreliable energy costs affected transport fares, manufacturing, food distribution and small businesses
He cited the growth of domestic refining as evidence of changing supply dynamics, noting that the Dangote Refinery produced about 42 million litres of petrol daily in August, while petrol imports fell by 26 per cent to approximately 146 million litres per day.
Sanwo-Olu said Lagos was also reducing transport fuel demand through investments in rail services and cleaner energy
He disclosed that 152 First and Last Mile buses had been converted to compressed natural gas (CNG), cutting fuel costs by nearly half, while 2,000 CNG-powered trucks had been introduced under haulage reforms
He urged industry stakeholders to prioritise expanded storage and distribution infrastructure, financing for downstream and gas projects, and measures to ensure that the gains from domestic refining translated into stable and affordable prices for consumers