The federal government has prohibited the export of crude oil meant for domestic refineries, aiming to boost local refining capacity, reduce the importation of refined petroleum products, and ease pressure on foreign exchange supply.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) warned that export permits for crude oil cargoes intended for domestic refining will be denied, and any changes to cargoes must receive express approval.
Impact of the Federal Government Ban
The move is expected to enhance domestic refining, reduce importation, and promote energy security, a key focus of the Federal government. The NUPRC noted that the daily crude requirement for refineries is approximately 770,500 barrels, about 37% of the forecasted average daily production.
Oil experts, including Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, and Prof. Wumi Iledare, Professor Emeritus in Petroleum Economics, have commended the government’s decision, citing its potential benefits for the economy and energy security, especially considering the proactive stance of the federal government.
The ban is seen as a bold step towards promoting local refining and reducing dependence on imported petroleum products. The Nigerian National Petroleum Company Limited (NNPCL) has also expressed support for the policy, stating that it reflects the federal government’s commitment to strengthening national energy security, highlighting the strategic vision of the federal government.
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