Regulator urges long-term strategy to secure feedstock, warns infrastructure gaps still threaten domestic refining growth…..
The Nigerian Upstream Petroleum Regulatory Commission has called on local refinery operators to take a more strategic role in Nigeria’s oil sector by acquiring upstream assets, positioning it as a lasting solution to the persistent challenge of crude supply.
The recommendation was made by the Commission Chief Executive, Oritsemeyiwa Eyesan, during a recent engagement with members of the Crude Oil Refinery Owners Association of Nigeria at the commission’s headquarters in Abuja.
During the meeting, both sides explored pathways to strengthen Nigeria’s domestic refining capacity and ensure a more reliable supply of crude to local processors.
Eyesan stressed that encouraging refiners to participate directly in upstream oil block ownership could significantly reduce supply uncertainties while improving commercial viability.
According to her, integrating refining operations with upstream assets would not only stabilise crude access but also deepen indigenous participation across Nigeria’s petroleum value chain.
She maintained that Nigeria has sufficient crude reserves to meet local refining demand, adding that the commission remains committed to policies that prioritise in-country value addition and support domestic operators.
Beyond asset ownership, the NUPRC boss also advised refiners to secure long-term supply contracts with crude producers. She described such agreements as essential for ensuring steady feedstock availability, enabling better operational planning, and achieving more predictable pricing structures.
Despite these proposals, she acknowledged that structural challenges continue to hinder efficient crude delivery across the country.
Key constraints identified include inadequate pipeline infrastructure, evacuation bottlenecks, limited storage capacity, and gaps in marine logistics issues she said require urgent investment and coordinated industry action.
Members of CORAN welcomed the commission’s reform efforts and its continued support for local refining initiatives. However, they emphasised that policies alone are not enough, calling for effective implementation of frameworks that guarantee consistent crude supply to domestic refineries.
Industry players have long argued that improving access to crude feedstock is critical to unlocking the full potential of Nigeria’s refining sector. Reliable supply, they note, would help reduce dependence on imported petroleum products, strengthen energy security, conserve foreign exchange, and stimulate job creation.
The meeting, according to CORAN’s spokesperson, Eche Idoko, forms part of ongoing engagements between regulators and private sector players aimed at addressing bottlenecks and accelerating growth in Nigeria’s downstream petroleum industry.
As Nigeria continues its push to expand local refining capacity, the spotlight is increasingly shifting toward sustainable crude supply models seen as a key factor in determining whether recent investments in the sector can deliver long-term results.
