Domestic Refineries: FG’s New Crude Oil Export Ban
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that it will deny export permits to oil producers who fail to meet their Domestic Crude Supply Obligation (DCSO) to local refineries, including the Dangote Refinery. This enforcement is in line with the Petroleum Industry Act, which mandates oil producers to supply specific volumes of crude oil to domestic refineries before exporting the remainder.
The NUPRC’s decision comes amid tensions between refiners and producers. Refiners have accused producers of not honoring supply obligations, while producers claim that refiners offer uncompetitive prices, prompting them to seek alternative markets. To address these issues, the NUPRC has emphasized that any diversion of crude designated for domestic refining is a violation of the law and will result in the denial of export permits for such cargoes.
For the first half of 2025, Nigerian refineries are projected to require 770,500 barrels of crude oil per day, with the Dangote Refinery alone needing 550,000 barrels per day.