NUPRC Urges Refiners to Acquire Oil Blocks

The Nigerian Upstream Petroleum Regulatory Commission has urged local refiners to consider acquiring oil blocks in upcoming licensing rounds as a long-term solution to persistent crude supply challenges affecting Nigeria’s downstream petroleum sector.

The call was made by the Commission Chief Executive, Oritsemeyiwa Eyesan, during a meeting with members of the Crude Oil Refinery Owners Association of Nigeria at the commission’s headquarters in Abuja. The engagement focused on strengthening domestic refining capacity and addressing bottlenecks limiting access to crude oil feedstock.

Eyesan stated that encouraging indigenous refiners to participate in upstream asset ownership would help create more stable and commercially viable crude supply arrangements. She noted that such participation would deepen local content across the petroleum value chain while improving supply security for refinery operators.

She maintained that Nigeria has sufficient crude oil resources to meet domestic refining demand, stressing that the primary challenge lies in supply chain inefficiencies rather than resource availability. The commission, she added, remains committed to policies that promote in-country value addition and support the growth of local refining.

The NUPRC boss also advised refinery operators to adopt long-term crude supply contracts with producers, describing them as a practical approach to ensuring consistent feedstock availability. She said such agreements would enhance operational planning and provide greater pricing stability in a volatile market environment.

Eyesan, however, pointed to infrastructure gaps as a major constraint to efficient crude delivery across the country. She identified inadequate pipeline networks, evacuation bottlenecks, storage limitations, and marine logistics challenges as key issues requiring urgent investment and coordinated action.

Members of CORAN, represented by spokesperson Eche Idoko, commended the commission’s regulatory reforms and its continued support for domestic refining initiatives. They emphasised the need for effective implementation of policies aimed at ensuring steady crude supply to local refineries.

The refiners reiterated that improved access to crude feedstock is critical to reducing Nigeria’s reliance on imported petroleum products. They noted that strengthening domestic refining capacity would enhance energy security, conserve foreign exchange, and support job creation within the sector.

Industry stakeholders continue to stress that resolving supply constraints remains central to unlocking the full potential of Nigeria’s downstream petroleum industry. They argue that stronger collaboration between regulators and private operators will be essential in addressing structural challenges and driving sustainable growth.

The meeting forms part of ongoing engagements between the commission and refinery operators aimed at improving efficiency across the oil and gas value chain. The NUPRC reaffirmed its commitment to ensuring transparency and fostering an enabling environment for investment in both upstream and downstream segments of the industry.