‘Crude swap coming back,’ Nigeria mulls deal, $4 cut off cost for domestic refineries
● “147 million barrels went to local refineries between Q1 and Q2,” at OTL 2026, NUPRC Commission Chief Executive, Oritsemeyiwa Eyesan, lists reasons the world should have no doubt that Nigeria’s Upstream has recovered
The Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Mrs. Oritsemeyiwa Eyesan, has disclosed that the Commission is consulting operators on crude swap arrangements aimed at taking $3 to $4 off the cost of crude for local refineries.
NUPRC boss made the disclosure at the OTL 2026 Expo, Africa Downstream Energy Week in Lagos, which also marked the 20th anniversary of the continent’s foremost downstream gathering.
Speaking on the state of the industry, Eyesan who was represented at the event by Assistamt Director, Omonebo Prosper, declared that Nigeria’s upstream sector has recovered, noting that the country has for five consecutive months met and surpassed its OPEC quota.
“Nigeria’s Upstream has recovered. Fifth consecutive months that we have met and surpassed the quota. We produced 1.78 million bopd. We keep improving,” she said.
According to her, the critical question facing the industry has shifted from availability to accessibility.
“The question now is not whether crude is available but that crude reaches the local refineries,” Eyesan told stakeholders.
She revealed that the Commission has sustained crude allocation to domestic refineries, disclosing that in one of the months in Q2, 2026 alone, 23.7 million barrels were supplied to the critical sub-sector.
From Q1 to Q2, 2026, an approximate total of 147 million barrels of crude oil went to local refineries, a volume she said underscores the regulator’s commitment to energy security and domestic refining.
The most striking announcement, however, was the push for a new pricing relief mechanism for refiners.
“The Commission is consulting operators in crude swap arrangements to take 3 – 4 dollars off the cost for refineries,” Eyesan announced.
The proposed swap deal, industry watchers say, could significantly lower feedstock costs for Dangote Refinery, modular refineries and other emerging plants, improve their margins and ultimately translate to more affordable petroleum products for Nigerians.
She explained that the arrangement is part of a broader strategy to make domestic refining commercially attractive and to ensure that the benefits of increased production are felt at home rather than lost to logistics and pricing inefficiencies.
Eyesan also issued a strong warning to operators sitting on idle assets, saying the Commission is now enforcing the drill or drop principle.
“Idle licenses will be withdrawn,” she declared, adding that the hard stance is necessary to unlock dormant reserves.
She linked the enforcement to the Federal Government’s ambitious target of delivering 3 million barrels per day output by the year 2030.
With upstream recovery confirmed, steady local supply guaranteed and a $4 cost-cutting swap deal on the table, Eyesan signaled that the next phase of Nigeria’s oil story will be defined by how much crude stays home to work for the economy.
