Nigeria will block oil export permits for producers failing to meet their domestic supply quotas, according to the country’s upstream oil regulator. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that it will deny export permits for crude cargoes that are meant for local refineries but diverted for export.
The move is in line with the Petroleum Industry Act (PIA), which mandates oil producers, including international companies, to allocate a portion of their crude for domestic refineries before exporting. However, some oil producers have struggled to meet this requirement, citing low prices offered by local refineries as the main reason.
Dangote Refinery, the largest in Africa, has called for stricter enforcement of the domestic supply obligation. The NUPRC’s Gbenga Komolafe issued a reminder to oil companies, warning them of the consequences for non-compliance. Komolafe’s statement followed a meeting where refiners blamed producers for not honoring their commitments, while producers pointed to uncompetitive pricing as a barrier to compliance.
