The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced it will withhold export permits from oil producers that fail to meet their domestic crude supply obligations to local refineries, including the Dangote Refinery, Africa’s largest.
The directive, issued Monday, is aimed at enforcing provisions of the Petroleum Industry Act (PIA), which mandates oil companies to allocate specific crude volumes for domestic refineries before exporting. The commission’s Chief Executive, Gbenga Komolafe, emphasized that failure to comply would lead to severe penalties.
The move follows growing concerns from the Dangote Refinery and other local refineries about insufficient crude supply. According to Komolafe, the NUPRC held a meeting with oil producers and refiners last week to address the issue. Refiners accused producers of neglecting their obligations, while producers countered that local refineries were offering uncompetitive prices, forcing them to sell abroad.
Komolafe reiterated that the diversion of crude cargo intended for domestic refining is illegal. “The commission will henceforth disallow export permits for any designated crude cargo meant for local refineries that is diverted,” he said.
For the first half of 2025, Nigerian refineries are projected to require 770,500 barrels of crude oil per day, with the Dangote Refinery alone needing 550,000 bpd, according to NUPRC data. The new enforcement is expected to boost local refining capacity and strengthen Nigeria’s energy security.
