The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a stern warning to oil companies, mandating compliance with the Domestic Crude Supply Obligation (DCSO) or risk losing export permits.
This directive comes as Nigeria seeks to strengthen its energy security and maximize local refining capacity amid growing concerns over crude oil supply shortages.
In a letter dated February 2, NUPRC’s Chief Executive, Engr. Gbenga Komolafe, stressed that companies must obtain express approval before diverting crude meant for local refineries. This move is expected to disrupt the long-standing practice of prioritizing international markets over domestic needs, which has often left local refineries struggling to secure feedstock.
At a recent stakeholders’ meeting, tensions flared as producers and refiners traded blame over lapses in the DCSO policy implementation. Refiners accused oil producers of bypassing local agreements to sell crude at higher international prices, leaving them scrambling for alternative supply sources. On the other hand, producers argued that some refiners failed to meet agreed commercial and operational terms, making external sales a necessity.
In response, Komolafe cited Section 109 of the Petroleum Industry Act (PIA) 2021, reinforcing the commission’s commitment to stabilizing domestic crude supply. The NUPRC has introduced regulatory measures, including the Production Curtailment and Domestic Crude Oil Supply Obligation Regulation 2023, to ensure compliance.
Beyond enforcing supply discipline, the commission is also pushing for greater transparency in pricing and contractual agreements between oil firms and local refiners. The new framework aims to remove bottlenecks that have historically hindered smooth implementation of the DCSO policy.
Experts believe this move could have far-reaching economic and security benefits. A steady supply of crude to domestic refineries will not only boost fuel availability and reduce dependence on imports but also create more jobs in Nigeria’s energy sector. Additionally, plugging loopholes in crude allocation could help curb illegal oil exports and pipeline vandalism.
However, some industry analysts warn that aggressive enforcement without addressing refinery capacity limitations and financial constraints could lead to unintended consequences, such as production shutdowns or disputes between regulators and oil firms.
With the Dangote Refinery and other modular refineries gradually coming online, the success of NUPRC’s policy will depend on how well it balances enforcement with incentives for both refiners and producers.
As the global oil market fluctuates, ensuring a sustainable domestic crude supply remains a strategic necessity for Nigeria’s energy future.
This latest directive signals that the era of lax enforcement is over, and all industry players must now align with Nigeria’s broader vision for energy self-sufficiency. Whether this marks a turning point or merely another regulatory cycle will depend on how well both the government and private sector navigate the challenges ahead.

The Confederation of Oil & Gas Communities of Nigeria has urged President Bola Tinubu to disregard allegations against the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe.
It described the claims as baseless and malicious.
The petition, submitted by Ufuoma Odiete, accused Komolafe of violating the Petroleum Industry Act (PIA) by establishing and chairing an Alternative Dispute Resolution Centre Body of Neutrals, which Odiete alleged is not recognized by the PIA.
It also alleged nepotism, claiming that 15 out of the 28 members of the committee are from the South West.

Addressing journalists in Abuja on Friday, the Confederation’s National Coordinator, High Chief George Bucknor, dismissed the petition as unfounded and intended to disrupt the smooth implementation of the PIA.

“The petition is malicious, vexatious, speculative, and libelous blackmail without substance,” Bucknor said. He explained that the establishment of the ADR Centre aligns with Chapter 3, Section 234 of the PIA, which empowers the Commission to create mechanisms for resolving disputes between settlors and host communities.
Bucknor clarified that the NUPRC’s role in host community development trust funds is regulatory and facilitative, not managerial. He cited Section 240(2) of the PIA, which mandates operators to contribute 3% of their actual annual operating expenditure to these funds.
He also criticized the petition as an attempt to destabilize the oil and gas industry and the Niger Delta region. “We strongly caution the petitioner against spreading false information,” he said, adding that host communities had passed a vote of confidence in Komolafe and his leadership.

Bucknor called on security agencies, particularly the Department of State Services (DSS), to investigate the motives behind the petition and ensure the stability of the sector.
Department of Security Services to use the earnest powers of their good offices to investigate: Ufoma Odiete subversive interest. 

“The intentions of Ufuoma Odiete in his widely circulated malicious vexatious and libelous blackmail against NUPRC and the Commission Chief Executive is capable of truncating: the smooth beneficial running of the PIA and causing unrest in the Oil industry and the Niger Delta Region.”
The Confederation reaffirmed its support for Engr. Komolafe, emphasizing that his initiatives are pivotal to the successful implementation of the PIA and the advancement of the oil and gas sector.

The Federal Government may see a significant rise in revenue, up to N6.99 trillion monthly, following an increase in oil production to 1.8 million barrels per day (bpd), according to the Nigerian National Petroleum Company Limited (NNPC Ltd.).
In collaboration with industry stakeholders, the NNPC has intensified efforts to boost crude oil output to meet the government’s production targets.
This increase is coming as the average price of Brent crude remained stable at around $81 per barrel, creating favorable conditions for substantial earnings. Calculations based on current production levels and exchange rates show that producing 1.8 million bpd at $81 per barrel could yield approximately $4.37 billion in monthly revenue, which translates to N6.99 trillion at an exchange rate of N1,600 per dollar.

NNPC’s Group Chief Executive Officer, Mele Kyari, announced the milestone during a recent Oil Production War Room meeting at NNPC headquarters in Abuja, attended by top officials, including Petroleum Resources Minister Heineken Lokpobiri. Kyari emphasized that the increased production aligns with the Federal Government’s 2024 budget projections and long-term economic goals.

Chief Production War Room Officer Lawal Musa highlighted that the collaboration between the NNPC, security agencies, and local communities had been crucial to achieving the 1.8 million bpd level. The goal is now set to reach 2 million bpd by the end of the year, a target the NNPC is optimistic about achieving given the current momentum and security improvements in oil-producing regions.

Minister Lokpobiri commended the NNPC for achieving this production feat, describing it as a “remarkable milestone.” He expressed confidence that NNPC Ltd could not only meet but exceed the two million bpd target, further enhancing Nigeria’s revenue prospects.

The Chairman of the NNPC Board, Chief Pius Akinyelure, reinforced the board’s commitment to furthering this progress, urging the management and staff to pursue even greater achievements in the oil and gas sector. Dr. Paul Bebenimibo, spokesperson for Tantita Security Services Nigeria Limited, one of the private security agencies involved, confirmed the peaceful and secure environment in the Niger Delta as key to the production surge, assuring that further measures are in place to sustain and even increase output.

The drive to reach two million bpd underscores NNPC’s dedication to stabilizing and expanding oil production, with significant implications for Nigeria’s fiscal health and overall economic stability.