FG bans export of crude oil meant for domestic refining

.NUPRC insists on strict enforcement of relevant laws

.As Tinubu approves university for Ogoniland

CHIGOZIE  AMADI

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has warned that it will deny export permits for crude oil cargoes intended for domestic refining, if oil companies do not fulfill their domestic crude obligations.

The Commission Chief Executive (CCE), Mr Gbenga Komolafe, insisted that any changes to cargoes designated for domestic refining must receive express approval from the commission.

Komolafe, in a letter dated Feb. 2, 2025, addressed to exploration and production companies and their equity partners reiterated that diverting crude oil meant for local refineries violates the law.

At a recent meeting, attended by more than 50 critical industry players, both the refiners and producers blamed each other for the inconsistencies in the Domestic Crude Supply Obligation (DCSO) policy implementation.

They, however, agreed that the regulator has put in place appropriate measures for effective implementation.

The refiners had claimed that producers were not meeting supply terms and preferred to sell their crude outside, forcing them to look elsewhere for feedstock.

The producers countered that refiners hardly met commercial and operational terms, forcing them to explore other markets elsewhere to avoid unnecessary operational bottlenecks.

Komolafe, therefore, cautioned against any further breaches from either party, and advised refiners to adhere to international best practices in procurement and operational matters.

He reminded producers not to vary the conditions stated in the DCSO policy without obtaining express permission from the commission before selling crude outside the agreed framework, to avoid abuse.

The executive secretary referenced Section 109 of the Petroleum Industry Act (PIA) 2021, which aims to ensure a stable supply of crude oil to domestic refineries and strengthen the nation’s energy security.

According to Komolafe, the commission will henceforth strictly enforce the policy regarding implementation and defaults by oil companies.

He stated that significant regulatory actions have already been taken by the Commission, in line with the enabling laws, to enforce compliance with the Domestic Crude Supply Obligation (DCSO).

“These actions include the development and signing of the Production Curtailment and DCSO Regulation 2023, as well as the creation of the DCSO framework and procedure guide for implementation.

“Also, during monthly meetings with upstream operators, NUPRC monitors compliance with production metrics that provide insight into available crude volumes two months in advance, facilitating discussions regarding supply commitments to refineries,” he said.

The NUPRC boss warned that it would not condone violation of the laws governing domestic crude supplies to local refineries, as such actions have implications for the country’s energy security.

“Kindly note that the diversion of crude cargo designated for domestic refineries is a contravention of the law and the Commission will henceforth disallow export permits for designated crude cargos for domestic refining,” he warned.

.As Tinubu approves university for Ogoniland

President Bola Tinubu on Monday in Abuja signed into law a bill establishing the Federal University of Environment and Technology(FUET) in Rivers State and pledged more support for the Ogoni community.

Ogoni town of Tai will host the University.

During the signing ceremony at the State House, President Tinubu said the establishment of the University will further empower Ogoni citizens and provide more opportunities for participation and development.

“Today marks a significant milestone in our national journey towards environmental justice, education and sustainable development.

“The Ogoni have been at the forefront of our development and agitation and have suffered enough environmental degradation,” the President said.

“It is more than the creation of a university. It is the reaffirmation of our unwavering commitment to the people of Ogoni, the Niger Delta and the entire nation as a whole.

“For decades, the Ogoni people have been at the forefront of the fight for environmental restoration and sustainable development, shaping national and global conversations on these critical issues.

“By signing this bill into law, we are taking a decisive step towards addressing historical grievances and creating new opportunities for learning, growth and prosperity,” he stated.

The President affirmed that the University will “serve as a centre of excellence, equipping young Nigerians with the knowledge and skill to tackle present environmental challenges, drive clean energy solutions and contribute to our national sustainable economic development.”

President Tinubu thanked the National Assembly, particularly the Senate and House of Representatives leadership, for properly considering the bill.

“Let me also commend the Ogoni delegation. Your steadfast advocacy for justice is encouraging. It will be rewarded, I assure you.

“As we look ahead, I urge all the stakeholders, traditional institutions, the academic community, the private sector, partners and all other youth to embrace this University as a beacon of knowledge, unity and progress.

“Together, we will ensure that it will not only fulfil its mandate but also stand as a catalyst for transformational development across the country,” the President said.

Minister of Education Dr Tunji Alausa said the University will prioritise interdisciplinary programmes in environmental science, clean energy, and sustainable technology, equipping students to tackle regional and national ecological issues.

The National Security Adviser, Malam Nuhu Ribadu, said the establishment of the University will address long-standing concerns and efforts to restore Ogoniland.

Ribadu noted that Ogoniland should be prioritised for inclusive development and environmental sustainability.

Sen. Mpigi Barinada, leader of the Ogoni delegation, thanked the President for signing the bill establishing the Federal University of Environment and Technology.

He also recognised the contributions of FCT Minister Nyesom Wike and NSA Ribadu in facilitating the bill’s passage.

Barinada said establishing a university would serve as a beacon of hope for the Ogoni community and an encouragement to “shield the sword” and embrace peace.