Nigeria Introduces Measures to Boost Domestic Refining Industry

Nigeria has unveiled new regulations aimed at reducing its dependence on imported refined oil products by compelling oil producers to prioritize supplying crude to domestic refineries.

Under these measures, all oil companies operating in Nigeria will be required to allocate a portion of their crude output to domestic refineries that are unable to secure their own local supplies independently.

The Nigerian Upstream Regulatory Commission has outlined that oil producers must fulfill their domestic supply obligations before being permitted to export crude. This move is expected to benefit the recently established Dangote Refinery, potentially increasing its access to locally sourced crude oil.

These regulatory changes mark a significant shift in Nigeria’s energy strategy, signaling a concerted effort to bolster the country’s domestic refining capacity. By prioritizing the supply of crude to local refineries, authorities aim to stimulate investment in the domestic refining sector and reduce the nation’s reliance on imported petroleum products.

The implementation of these measures underscores Nigeria’s commitment to fostering a self-sufficient and sustainable energy landscape, aligning with broader objectives to enhance economic resilience and energy security.