On February 3, 2025, the Nigerian government announced a ban on exporting crude oil allocated for domestic refineries. This move aims to ensure that local refineries, including the Dangote Refinery, receive sufficient crude oil to meet their processing needs.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by Gbenga Komolafe, emphasized that oil producers must fulfill their domestic supply obligations as mandated by the Petroleum Industry Act. This law requires producers to supply a specific amount of crude oil to local refineries before considering exports.
Recent discussions between producers and refiners revealed tensions. Refiners accused producers of not honoring supply commitments, while producers argued that refiners offer uncompetitive prices, prompting them to seek other markets. In response, the NUPRC warned that it would deny export permits to producers who divert crude oil meant for domestic refining.
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 daily.
This policy underscores Nigeria’s commitment to strengthening its refining sector and reducing dependence on imported refined petroleum products.
