Nigeria: Nuprc Plans Oil Swap Framework to Raise Supply, Cut Logistics Costs

What the report says

Nigeria’s upstream regulator says it is consulting industry stakeholders on a proposed oil and gas swap framework designed to cut transport costs and improve the flow of feedstock to local refineries. According to This Day, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) outlined the idea during a visit by its chief executive, Oritsemeyiwa Eyesan, to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

The proposed system would allow companies with domestic supply obligations to exchange responsibilities based on where their crude is located and how close their facilities are to domestic buyers or export points. Rather than moving oil long distances, firms could agree to swap supplies and then settle the difference through a netting process. The commission said discussions are still at an early stage.

If adopted, the framework would be meant to strengthen compliance with the Domestic Crude Supply Obligation and the Domestic Gas Supply Obligation. The gas side would be coordinated with the Gas Aggregation Company of Nigeria. NUPRC said the plan is part of broader efforts to make domestic supply more efficient, even as local refineries have improved access to crude.

The article said Nigerian refineries received 53.7 million barrels between April and June 2026, with NUPRC reporting 97.4% performance under the domestic crude obligation for the second quarter. Officials from both regulators also discussed tighter coordination across the petroleum sector, pricing concerns under the Petroleum Industry Act, and support for strategic petroleum reserves as a way to improve energy security and stability.