ABUJA — The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is exploring a crude oil and gas swap arrangement that could reduce supply costs and improve the availability of petroleum products for domestic consumers.
NUPRC Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this on Thursday, August 13, 2026, during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
The proposal is aimed at improving compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation by allowing producers and offtakers to meet supply obligations through strategically arranged exchanges rather than moving commodities unnecessarily across long distances.
Eyesan explained that the proposed mechanism would allow parties with different supply obligations and locations to exchange crude or gas and subsequently settle the transactions through an agreed netting arrangement.
> “So, instead of trying to move from one end to the other, we just agree on a swap arrangement and there is a mechanism for them netting off,” she said.
She, however, stressed that discussions on a crude oil swap were still at an early stage, with the NUPRC consulting stakeholders on the modalities.
Domestic crude supply rises
The proposed swap arrangement comes as domestic crude supply to Nigerian refineries has recorded significant improvement.
According to the latest NUPRC statistics cited by the Commission, local refiners received 53.7 million barrels of crude oil between April and June 2026, representing an overall compliance performance of 97.4 per cent in the second quarter of 2026.
Despite the improvement, crude oil imports into Nigeria persist, prompting the NUPRC to examine additional mechanisms for improving domestic supply and reducing inefficiencies in the movement of crude.
Eyesan said the proposed arrangement would also be coordinated with the Gas Aggregation Company Nigeria Limited (GACN) in relation to domestic gas supply.
The NUPRC chief pledged to deepen collaboration with the NMDPRA to improve the efficiency and reliability of Nigeria’s petroleum supply chain.
NMDPRA backs strategic reserves
NMDPRA Chief Executive, Mallam Rabiu Abdullahi Umar, commended the NUPRC for the improvement recorded in enforcing domestic crude supply to local refineries.
Umar also congratulated the Commission on what he described as a seamless and credible 2025 licensing round.
He noted, however, that the Petroleum Industry Act provides for transactions on a willing-buyer, willing-seller basis, making pricing an important factor in the domestic crude supply framework.
The NMDPRA therefore expressed support for the establishment of strategic petroleum reserves, saying such reserves would strengthen Nigeria’s energy security and contribute to price stability.
The discussions between the two regulatory agencies highlight ongoing efforts to strengthen coordination across Nigeria’s upstream, midstream and downstream petroleum sectors as domestic refining capacity expands.
