The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it is consulting widely with stakeholders in the industry on the idea of a domestic crude oil and gas swap to reduce costs and increase product availability.

The Commission Chief Executive, NUPRC, Oritsemeyiwa Eyesan, said this during a courtesy visit to the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) in Abuja.

Mrs Eyesan, in a statement on Friday, said once all the modalities were finalised, there would be improved compliance with the Domestic Crude Supply Obligation (DCSO) and the Domestic Gas Supply Obligation.

This, she said, would also be coordinated with the Gas Aggregation Company Nigeria Limited (GACN).

Latest statistics by the commission showed a massive improvement in domestic crude supply to local refiners.

A total of 53.7 million barrels of crude oil were supplied to local refiners between April and June, showing an overall performance of 97.4 per cent for the second quarter (Q2) of 2026.

However, the importation of crude oil persists.

Mrs Eyesan, therefore, said that the commission was in discussions with stakeholders on the way forward.

“How the swap works is that I have an obligation somewhere and I am close to an export facility. Somebody else has an obligation inland and his own (facility) is close to a domestic off-taker.

“So, instead of trying to move from one end to the other, we just agree on a swap arrangement and there is a mechanism for them netting off,” she said.

The NUPRC boss said that, in the case of crude oil, discussions were still at an early stage.

Mrs Eyesan promised to deepen collaboration with the NMDPRA in the overall interest of the sector.

In his remarks, the Authority Chief Executive, NMDPRA, Rabiu Umar, congratulated the commission for conducting a seamless and credible 2025 licensing round.

He also lauded the NUPRC for the improvement in the enforcement of the domestic crude supply to local refiners.

Mr Umar said even though the Petroleum Industry Act stipulated that all transactions would be done on a willing buyer and willing seller basis, issues of pricing remained a major factor.

The NMDPRA, therefore, expressed support for the creation of strategic reserves, which would boost energy security and ensure price stability.

 (NAN)