By Mary Onyia
The Federal Government has outlawed the export of crude oil reserved for domestic refineries in the country to improve local refining capacity.
The government said the move was intended to also reduce the pressure on foreign exchange supply, and minimize the import of refined petroleum products.
The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, in a statement issued in Abuja, warned that the government would in the future repudiate export permits for crude oil cargoes meant for domestic refineries, which did not receive the express approval of the chief executive.
In a letter dated February 2, 2025, addressed to exploration and production companies and their equity partners, the commission’s Chief Executive Officer, Engr. Gbenga Komolafe cautioned that diverting crude oil meant for local refineries is a violation of the extant laws of the country.
Komolafe referenced Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure the stable supply of crude oil to domestic refineries and strengthen the nation’s energy security.
He said NUPRC would, henceforth, strictly enforce the policy regarding implementation and defaults by oil companies.
He stated government has put appropriate measures in place in line with enabling laws to enforce compliance with the DCSO. These actions include, among others, the development and signing of the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, and the creation of the DCSO framework and procedure guide for implementation.
Komolafe said that henceforth, the Commission would strictly enforce implementation, and punish defaults by oil companies. He cited Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure a stable supply of crude to domestic refineries and strengthen the nation’s energy security, adding that they have agreed to put in place appropriate measures for effective implementation of the law.
He said NUPRC would, in the future, strictly enforce the policy regarding implementation and defaults by oil companies.
Before now, about 500,000 barrels of crude oil per day meant for domestic refining have been finding their way to the international market as producers and traders shortchange the policy for quick foreign exchange proceeds.