The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has instructed the exploration and production firms to closely follow the crude oil supply obligations for local refineries.
Additionally, the commission issued a warning that if oil companies did not fulfill their local crude supply requirements, it would refuse export permits for crude oil cargoes meant for domestic refining.
The regulatory body emphasised that the Chief Executive of the Commission must specifically approve any modifications to cargoes intended for domestic refining in a circular released by its Public Affairs Unit on Monday.
Nigeria’s energy self-sufficiency is a worry, and this decision comes after local refiners, particularly the Dangote Petroleum Refinery, complained about their inability to obtain sufficient crude supplies.
In the first half of the year, the Dangote refinery is anticipated to process 17.05 million barrels per month, or 550,000 barrels per day, according to NUPRC data.
Refinery sources assert that the government has not complied with this demand, and suppliers are asking for a portion of the payment in US dollars.
In a February 2, 2025, letter to exploration and production firms and their equity partners, Commission Chief Executive Gbenga Komolafe reaffirmed that it is illegal to divert crude oil intended for local refineries.
In the first half of the year, the Dangote refinery is anticipated to process 17.05 million barrels per month, or 550,000 barrels per day, according to NUPRC data.

Refinery sources assert that the government has not complied with this demand, and suppliers are asking for a portion of the payment in US dollars.
In a February 2, 2025, letter to exploration and production firms and their equity partners, Commission Chief Executive Gbenga Komolafe reaffirmed that it is illegal to divert crude oil intended for local refineries.
“Please take note that the Commission will no longer provide export permits for crude cargo that is diverted from domestic refineries due to legal violations.
“Any changes to any cargo intended for domestic refining require the Commission Chief Executive’s specific consent. Please strictly comply with the above,” the letter stated.
It was learnt that over 50 important industry participants attended a stakeholder conference last weekend as part of efforts to address the problem.
Producers and refiners criticised one another throughout the meeting for inconsistent application of the Domestic Crude Supply Obligation policy.
Refiners said they were forced to look for other feedstock sources since producers were not meeting supply agreements and instead chose to sell oil overseas.
On the other hand, producers said that refiners seldom complied with their operational and commercial requirements, forcing them to look for alternative markets to get around operational bottlenecks.
Both parties did agree, nevertheless, that the regulator has taken the necessary steps to guarantee compliance.
The commission issued a warning against any such violations by either party.
It urged refiners to follow global best practices in procurement and operations, and it reminded producers that before selling crude outside of the predetermined framework, the CCE must expressly approve any changes to the DCSO policy requirements. It said that this was done to stop abuse.
Stressing that non-compliance jeopardises Nigeria’s energy security, the CCE issued a warning that it will no longer accept infractions of domestic crude supply laws.