Nigeria Reviews Crude Oil Rules to Aid Domestic Refiners

The Nigerian government is reviewing crude oil allocation and pricing rules to improve feedstock access for domestic refiners. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is leading a review of the domestic crude supply obligation this week, following proposals from the Crude Oil Refinery-owners Association of Nigeria (CORAN). CORAN suggests allowing producers to deliver crude directly to nearby refineries and granting discounts to refiners who lift crude directly from production facilities to eliminate freight and handling costs, which currently add $3 to $4 per barrel.

Dangote Petroleum Refinery & Petrochemicals Fze has called for a consistent supply of Nigerian crude oil on commercially viable terms. The company disputed NUPRC data suggesting it rejected 15.5 million barrels of crude in the second quarter of 2026, arguing that the primary issue is not volume but the lack of crude available at competitive prices.

Devakumar Edwin of Dangote Industries Limited stated that sourcing crude through intermediaries and International Oil Companies often adds premiums exceeding international benchmarks, which increases costs for Nigerian consumers. The company also expressed concern that the Petroleum Industry Act framework allows counterparties to withdraw from negotiations without structured reviews, creating operational uncertainty.