NUPRC: Refiners received offers for 182m barrels, completed deals for 112m

CRUDE oil producers offered Nigerian domestic refineries 182 million barrels of crude between January and August 2026, but transactions were completed for only 112 million barrels, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed.

The figures were revealed by NUPRC Chief Executive Officer, Ms Oritsemuyiwa Eyesan, at the third Nigeria Oil Refining Summit in Lagos.

Eyesan, represented at the event by Deputy Director at the commission, Boma Atiyegoba, said domestic refiners had declared a combined crude requirement of 154.6 million barrels during the 8-month period.

She said the 182 million barrels offered by producers represented 118 percent of the volume declared by refiners. Despite the volume made available, only 112 million barrels translated into completed commercial transactions.

Eyesan said the shortfall between crude offered and crude actually purchased should not be viewed as a failure by either producers or refiners.

Instead, she described it as a reflection of unresolved commercial issues affecting transactions between the upstream and downstream segments of the industry.

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Among the issues identified were crude pricing, payment guarantees, crude specifications and delivery schedules.

According to Eyesan, producers are seeking stronger payment security, dependable offtake arrangements and room to meet existing export commitments.

Refiners, on the other hand, are seeking certainty over crude availability, delivery timelines and prices that support sustainable refinery operations.

“The commission is listening, and we are active,” Eyesan said.

NUPRC targets better coordination of crude supply

Eyesan said the commission intends to improve coordination between crude producers and domestic refineries by providing greater visibility into refinery demand and available production.

She said NUPRC would also intensify monitoring of domestic crude supply obligations and strengthen compliance where necessary.

The regulator is further considering a domestic crude swap arrangement aimed at overcoming geographical and logistical barriers in the supply chain.

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According to Eyesan, stakeholder consultations on the proposed framework have been completed.

Under the proposed swap system, a producer located closer to an export terminal could transfer its domestic supply obligation to another producer whose crude is located closer to a Nigerian refinery.

The arrangement, she said, could reduce transportation expenses and shorten delivery times while making it easier for producers to meet their domestic supply obligations.

More crude production needed

The NUPRC boss also pointed to production levels as a critical factor in meeting the growing needs of Nigeria’s refining industry.

She said the commission was accelerating field development and working to reactivate shut-in wells and marginal assets.

Eyesan said additional production would be required as more refineries increase their processing capacity and demand for locally produced crude rises.

Lokpobiri: Producers and refiners need each other

Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, urged stakeholders to view crude producers and domestic refiners as interconnected parts of the same petroleum value chain.

He said upstream operators need sufficient commercial returns to justify investments in exploration, development, production and infrastructure.

Refineries, meanwhile, need reliable crude supplies at commercially sustainable prices to operate consistently.

“Nigeria cannot achieve sustainable refining by treating upstream producers and domestic refiners as opposing sides of the same transaction,” Lokpobiri said.

The minister said government must create the conditions necessary for both sides of the industry to operate sustainably.

He also maintained that the willing-buyer, willing-seller principle provided under the Petroleum Industry Act remains central to domestic crude transactions.

The NUPRC disclosure underscores the difference between crude volumes offered to local refiners and volumes that ultimately result in completed transactions, with commercial terms, financing arrangements, crude specifications and logistics remaining important factors in the domestic supply chain.