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The Nigerian government has banned the export of crude oil allocated for domestic refineries, citing illegal exports and concerns over energy security. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) warns producers to comply or face export permit denial, aiming to stabilize local refining and strengthen the nation’s energy security.

The Nigerian government has taken decisive action by prohibiting the export of crude oil intended for local refineries. The move is in response to ongoing illegal exports, which have seen approximately 500,000 barrels per day of crude meant for domestic refining being diverted to international markets.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has now warned that any attempt to export crude oil designated for local refineries will result in the denial of export permits. The commission further emphasized that any adjustments to shipments meant for local refineries must receive explicit approval from its Chief Executive Officer, Engr. Gbenga Komolafe.

In a letter dated February 2, 2025, Komolafe reminded exploration and production companies of the legal implications of violating the country's laws regarding crude oil exports. Tensions between refiners and producers have been high, with both parties blaming each other for discrepancies in the Domestic Crude Supply Obligation (DCSO) policy. Refiners argue that producers often prefer selling crude to international buyers, while producers claim that refiners do not meet commercial and operational terms.

At a recent meeting of key industry stakeholders, both sides agreed that NUPRC's strengthened regulatory measures were necessary for the enforcement of the policy. The government hopes that these measures will help secure a steady supply of crude for local refineries, which is crucial to the nation's energy security.