Energy Capital & Power

Nigeria: Regulator Directs Oil Producers to Supply Local Refineries

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refineries. downstream sector

The Nigerian Upstream Petroleum Regulatory Commission has adopted a new regulation requiring oil producers in the country to deliver 483,000 barrels per day (bpd) to local refineries starting January 2024.

The aim is to expand the country’s downstream sector, boost production of refined petroleum products and meet growing fuel demand by leveraging domestic resources. 

The directive will remain in effect for the next six months and forms part of Nigeria’s Petroleum Industry Act enacted in 2021. The development comes at a pivotal moment as Nigeria’s downstream sector undergoes expansion with six new refineries, including the 650,000-bpd Dangote Refinery, as well as Port Harcourt, Warri and Kaduna refineries, expected to be operational from 2024.

The Dangote Refinery will receive a majority share of the crude oil from up to 48 local producers, while refineries such as Waltersmith, OPAC and Niger Delta Petroleum will each be supplied 10,000 bpd.

According to the regulator, the refineries are obligated to compensate the local producers at prevailing global market prices for the crude oil supplied.

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Nicholas Nhede

Nicholas Nhede

Nicholas is an energy sector journalist with a passion on how technology and diversification of the energy mix can be used to address energy sector challenges. Nicholas holds a diploma in Journalism and Communication studies and has been covering energy-related topics including the Internet of Things, distributed energy and digitalisation since 2015.

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