Nigeria’s upstream oil regulator has announced strict measures against oil producers that fail to meet their domestic supply quotas. In a statement on Monday, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) warned that export permits would be denied to companies that do not allocate the required crude volumes to local refineries.
Under the Petroleum Industry Act, oil producers, including international firms, are obligated to supply a portion of their crude to domestic refineries before exporting. However, some producers have not adhered to this requirement, citing uncompetitive prices offered by refiners. This has led to calls from the Dangote Refinery, Africa’s largest, urging regulators to enforce compliance.
The commission’s head, Gbenga Komolafe, issued a reminder to oil companies about their legal obligations and potential penalties for non-compliance. Last week, a meeting between oil producers and refiners highlighted ongoing disputes—refiners accused producers of failing to supply crude as required, while producers argued that low refinery prices were pushing them to seek alternative markets.
Komolafe emphasized that diverting crude meant for domestic refineries violates the law and that the commission would block export permits for such cargoes. According to regulatory schedules, Nigerian refineries will require 770,500 barrels per day in the first half of 2025, with the Dangote Refinery expected to need 550,000 bpd.