NIGERIA TO ENFORCE DOMESTIC CRUDE SUPPLY OBLIGATIONS

Nigeria’s upstream oil regulator announced that oil producers failing to meet their domestic refinery quotas will be denied export permits for oil cargoes.

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This enforcement of the Petroleum Industry Act addresses non-compliance with the domestic crude supply obligation, as some producers have cited uncompetitive prices offered by local refiners.

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The Dangote Refinery, Africa’s largest, has called for strict enforcement of this law. Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission, emphasized that failure to meet domestic obligations contravenes the law.

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For the first half of 2025, Nigerian refineries require 770,500 barrels of crude per day, with the Dangote Refinery needing 550,000 bpd.

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The government urges oil producers to comply to ensure energy security and support local refining capacity.