The Federal Government has expressed concern over poor compliance with the Domestic Crude Supply Obligation (DCSO), which prioritises crude oil supply to local refineries before export, even as gas flaring continues to rise across Nigeria.
These concerns were raised in Abuja during the 2025 International Conference on Hydrocarbon Science and Technology (ICHST), where stakeholders warned that persistent gaps in crude allocation and environmental management threaten the nation’s energy security.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, represented by the ministry’s Permanent Secretary, Dr. Emeka Obi, admitted that the DCSO regime under the Petroleum Industry Act (PIA) remains only partially implemented.
He explained that without guaranteed domestic crude allocation, investments in refining and midstream operations would continue to struggle, despite production averaging 1.8 million barrels per day.
Lokpobiri urged the Petroleum Training Institute (PTI) to boost manpower training and research collaboration to support DCSO implementation and build local refining capacity.
Also speaking, Dr. Chidiebele Uzoagba, representing PANA Holdings Chairman, Dr. Daere Akobo, lamented that gas flaring rose by 12 per cent in 2024 despite multiple government initiatives to curb emissions.
She described the trend as “deeply concerning,” warning that the rise undermines Nigeria’s decarbonisation goals and global climate commitments.
The Executive Commissioner for Corporate Services and Administration, NUPRC, Dr. Kelechi Ofoegbu, emphasised that Africa’s hydrocarbon wealth can only drive prosperity if governed ethically and transparently.
He said governance—not geology—determines success in the global energy transition and reaffirmed Nigeria’s commitment to gas flare commercialisation and participation in the Africa Petroleum Regulators Forum (AFRIPERF).
Meanwhile, the House of Representatives has launched an investigation into the alleged non-repatriation of over $850 billion in crude oil and non-oil export proceeds between 1996 and 2014.
Chairman of the Ad Hoc Committee on Pre-shipment Inspection of Exports, Hon. Seyi Sowunmi, said findings indicate that exporters failed to remit between 40 and 45 per cent of Nigeria’s crude export earnings, violating laws that mandate full repatriation within 90 days for oil exports and 180 days for non-oil exports.
Sowunmi added that the probe aims to protect Nigeria’s economic integrity amid worrying disparities in export data reported by the CBN, NUPRC, NNPC Limited, NBS, and OPEC.
He said the committee would also scrutinise leakages in the solid minerals sector—long marred by under-valuation and capital flight—as part of efforts to restore transparency, accountability, and investor confidence in Nigeria’s energy and export systems.