No Crude, No Export: FG Moves Against Shell, Total, Others Bypassing Dangote Refinery
- The Nigerian government sent a strong warning to international oil companies against bypassing local refineries in crude oil sales
- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this, saying it will no longer grant export licenses to defaulters
- The upstream regulator said that IOCs and local drillers must prioritise domestic refineries before considering export
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Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The federal government has issued a stern warning to international oil companies (IOCs) and local producers, saying it will no longer grant export permits to firms that fail to meet their domestic crude oil supply obligations.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made this declaration as part of renewed efforts to strengthen energy security and ensure steady crude supply to Nigerian refineries, including the 650,000-barrels-per-day Dangote Refinery and other modular plants across the country.
Source: Facebook
Crude before export, says NUPRC.
Speaking at the second Nigeria Refining Summit in Lagos, NUPRC Chief Executive Gbenga Komolafe, represented by Commission official Boma Atiyegoba, said the agency will strictly enforce the provisions of the Petroleum Industry Act (PIA) that compel producers to prioritise local crude supply before export.
According to a report by Punch, Komolafe explained that the commission, working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), determines the crude requirements of domestic refiners every six months.
Producers are then assigned specific supply quotas that must be met before any export approvals are considered.
“When allocations are made, the Commission uses export permits and vessel clearances to monitor compliance,” Komolafe said. “If you don’t meet your domestic obligation, you will not be cleared to export a single barrel.”
Enforcing energy security
Komolafe emphasised that the domestic crude supply obligation is not optional.
“This is not a request; it is a regulatory requirement designed to improve Nigeria’s energy security,” he stated, adding that NUPRC has developed transparent metrics agreed upon by all stakeholders to determine how much crude each producer must allocate locally.
He noted that enforcement would ensure that Nigeria’s refining capacity, especially with new entrants like Dangote and Waltersmith, is fully utilised, reducing dependence on imported petrol and diesel.
Refiners cry out over crude shortage
Despite these assurances, members of the Crude Oil Refinery Owners Association of Nigeria (CORAN) say many refiners still struggle to access feedstock.
CORAN president, Momoh Oyarekhua, lamented that the “willing buyer, willing seller” clause in the PIA was undermining the domestic supply obligation.
“In sustaining refining in Nigeria, there must be — consistent and reliable supply. Without it, our refining dream cannot be sustained,” he said.
He urged regulators to move beyond policy statements and take decisive action against defaulting producers.
FG’s final word: Compliance or no export
The NUPRC maintained that it would not back down. Only oil firms that meet their local supply quotas will be granted export clearance.
The move signals a tougher stance by the federal government to protect domestic refineries, boost local production of petroleum products, and finally put an end to decades of fuel import dependence.
Source: Twitter
The warning is coming when local refineries, such as the mega refineries, are gasping for feedstock to boost production.
Expert commends FG’s move
A prior report by Legit.ng disclosed that the 650,000 bpd-capacity refinery renewed its Naira-for-crude agreement for two years.
The refinery had threatened to halt sales of petrol in the local currency as it relied more on imported crude.
Experts said that NUPRC’s warning is timely, as most of the oil producers have developed a large appetite for petrodollar, thereby depriving domestic refineries of feedstock.
“The warning is both timely and in order,” Osas Igho, a financial analyst, told Legit.ng on a call.
“It’s time the authorities stood up to the oil giants, which have developed big appetites for petrodollars,” he said.
Dangote imports crude oil from the US
Legit.ng earlier reported that Dangote Refinery, Africa's largest oil processing plant located near Lagos, increased its imports of US crude oil this year.
The refinery’s reliance on imported crude for production underscored Nigeria’s ongoing oil production struggle despite various promises and the naira for crude policy.
According to the May 2025 Monthly Oil Report by the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production averaged 1.468 million barrels per day (mbpd) in the first quarter of 2025, significantly below the 2 mbpd target set in the federal budget.
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Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
