The Dangote Petroleum Refinery and other domestic refineries could have saved between $246.6 million and $328.8 million on crude oil supplies in the first half of 2026 if the proposed domestic crude swap arrangement had been in place.

The development follows the confirmation by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Friday that consultations had commenced with key industry stakeholders on a domestic crude oil and gas swap arrangement.

The proposed initiative is aimed at reducing the cost of crude supplies to local refineries while ensuring adequate availability of crude oil for domestic processing.

The arrangement is also expected to improve compliance with the Domestic Crude Supply Obligation (DCSO) and Domestic Gas Supply Obligation (DGSO), while reducing the need to transport crude over long distances to meet refinery supply requirements.

The initiative is expected to strengthen domestic refining operations, lower supply costs and support the Federal Government’s efforts to increase local crude processing and reduce dependence on imported refined petroleum products.