NUPRC seeks petroleum swap deal to boost domestic fuel supply

By Onu Okorie

Nigerian Upstream Petroleum Regulatory Commission NUPRC is engaging industry stakeholders on a proposed domestic crude oil and gas swap arrangement aimed at reducing costs and improving the availability of petroleum products across the country.

 The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed the initiative during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja on August 13, 2026. 

According to Eyesan, the proposed swap mechanism is expected to strengthen compliance with the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation once operational details are finalized. She added that the process would be coordinated alongside the Gas Aggregation Company Nigeria Limited (GACN). 

The NUPRC chief said recent data indicate significant progress in domestic crude supply, with 53.7 million barrels delivered to local refiners between April and June 2026, representing a performance level of 97.4 percent in the second quarter.

Despite the improvement, crude oil imports continue, prompting discussions on alternative strategies to optimize supply logistics. Eyesan explained that the proposed swap arrangement would allow producers and operators to exchange supply obligations based on the proximity of their facilities to export terminals or domestic offtakers, thereby reducing transportation challenges and associated costs. 

She noted that discussions on implementing the model for crude oil remain at an early stage but expressed confidence that greater collaboration across the industry would support its success. Eyesan also pledged deeper cooperation between NUPRC and NMDPRA to advance national energy objectives. 

In response, the Authority Chief Executive of NMDPRA, Rabiu Abdullahi Umar, commended NUPRC for conducting a seamless 2025 licensing round and for improving enforcement of domestic crude supply obligations to local refiners.

Umar observed that while the Petroleum Industry Act prescribes a willing-buyer, willing-seller framework for transactions, pricing issues remain a key challenge. He also voiced support for the establishment of strategic petroleum reserves, describing them as vital for strengthening energy security and promoting price stability.