The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is working on a crude oil and gas swap arrangement designed to reduce supply costs and improve crude availability for domestic refineries as the country expands its refining capacity.

The Commission said it has started consultations with industry stakeholders on the proposed Nigeria crude swap scheme. The plan is intended to strengthen compliance with the Domestic Crude Supply Obligation and Domestic Gas Supply Obligation while making better use of existing supply and transportation networks.

Oritsemeyiwa Eyesan, chief executive of the NUPRC, disclosed the initiative during a courtesy visit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

According to the NUPRC, the arrangement could allow producers with access to export facilities to meet the domestic supply obligations of producers located closer to refineries. That would reduce the need to move crude unnecessarily over long distances.

Crude supply to refineries improves

The proposed swap comes as domestic crude deliveries show signs of improvement. NUPRC data showed that Nigerian refineries received 53.7 million barrels of crude between April and June 2026, equivalent to 97.4% performance against the Domestic Crude Supply Obligation in the second quarter.

Eyesan said the commission is working with relevant stakeholders to establish the operating framework for the scheme. The Gas Aggregation Company Nigeria Limited is also expected to participate in the arrangement.

The initiative comes as Nigeria seeks to translate growing refining capacity into a more reliable domestic fuel supply chain. Greater access to locally produced crude remains central to the economics of the country’s refining industry.

Pricing remains a key issue

Rabiu Abdullahi Umar, chief executive of the NMDPRA, welcomed the NUPRC’s efforts to improve enforcement of domestic crude supply but said pricing remains a major consideration in transactions between producers and local refiners.

The NUPRC, established under Nigeria’s 2021 Petroleum Industry Act, regulates the technical and commercial aspects of upstream oil and gas activities, including exploration, petroleum licences, leases and field development.

For Nigeria’s refining industry, the success of the proposed scheme will depend on how efficiently producers, regulators and refiners can agree on pricing, volumes and delivery terms.