The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a stern warning to crude oil producers failing to meet their Domestic Crude Supply Obligation (DCSO), vowing to withhold export permits for violators.
In a statement released in Abuja on Sunday, the Commission’s Chief Executive, Gbenga Komolafe, reaffirmed that crude designated for local refineries must not be diverted for export without approval. He emphasized that such violations contravene the Petroleum Industry Act (PIA) and will attract strict regulatory actions.
The warning follows growing concerns over inadequate crude supply to domestic refineries, including Africa’s largest, the Dangote Refinery, and modular refineries struggling with feedstock shortages. While oil producers cite commercial disputes and operational challenges, the NUPRC insists on strict adherence to the DCSO policy to bolster Nigeria’s energy security.
To address these issues, the Commission recently convened a meeting with over 50 industry stakeholders. During the discussions, refiners accused producers of prioritizing foreign sales, while producers claimed that refiners often failed to meet contractual terms.
Komolafe stressed that moving forward, all crude oil cargoes designated for domestic use must receive express approval before any changes to supply destinations. He also highlighted the regulatory framework, including the 2023 Production Curtailment and Domestic Crude Oil Supply Obligation Regulation, designed to enforce compliance.
Meanwhile, the federal government has reaffirmed its target of reaching 2.7 million barrels per day of crude oil by 2027, primarily through increased condensate production. Special Adviser on Energy to President Bola Tinubu, Olu Verheijen, revealed this during an energy conference in Tanzania, noting that improved security in oil-producing regions is a key factor in boosting output.
With Nigeria aiming to become a net exporter of refined petroleum products as the Dangote Refinery ramps up operations, the NUPRC’s renewed enforcement strategy seeks to ensure local refineries receive adequate crude supply to sustain production and reduce reliance on imports.
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