The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are strengthening their inter-agency collaboration to implement a domestic crude oil and gas swap framework designed to reduce logistical costs and improve petroleum product availability across Nigeria.
The Commission Chief Executive of the NUPRC, Mrs. Oritsemeyiwa Eyesan, announced the initiative during a courtesy visit to the NMDPRA headquarters in Abuja recently.
Eyesan explained that finalizing the swap framework will significantly boost compliance with both the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation (DGSO), with operational coordination supported by the Gas Aggregation Company Nigeria Limited (GACN).
Under the proposed arrangement, producers closer to export terminals can swap supply obligations with inland operators positioned nearer to domestic refiners, minimizing transport bottlenecks through a structured netting-off mechanism.
While discussions surrounding the crude swap remain at an early stage, Eyesan reaffirmed the NUPRC’s commitment to working closely with the NMDPRA to optimize efficiency across the entire energy value chain.
The initiative comes as recent data revealed a strong 97.4% DCSO performance in the second quarter of 2026 delivering 53.7 million barrels of crude oil to local refiners between April and June even as domestic refiners continue to supplement feedstock through imports.
In response, the Authority Chief Executive of the NMDPRA, Mallam Rabiu Abdullahi Umar, commended the NUPRC for successfully conducting a credible 2025 licensing round and for its rigorous enforcement of domestic crude supply obligations.
Umar noted that while the Petroleum Industry Act (PIA) mandates transactions on a willing-buyer, willing-seller basis, transparent commercial pricing remains a critical factor.
He reiterated the NMDPRA’s support for joint regulatory initiatives, including the establishment of strategic reserves to bolster national energy security and foster price stability.