KEY POINTS
- Nigeria supplied only 28.5 million barrels of crude to local refineries, representing 36–46% of allocations in Q1 2026.
- The Nigerian Upstream Petroleum Regulatory Commission blamed pricing disputes under the “willing buyer, willing seller” model.
- Deliveries to refineries like the Dangote Refinery remain inconsistent despite government energy sufficiency goals.
The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has revealed that Nigeria’s domestic refineries, including the Dangote Refinery and others, received only between 36 and 46 percent of their allocated crude oil in the first quarter of 2026.
According to the Commission’s Domestic Crude Supply Obligation (DCSO) report, out of 61.9 million barrels allocated for local refining, only 28.5 million barrels were actually delivered during the period.
The report highlights a continued gap between planned allocations and actual supply, raising concerns about Nigeria’s domestic refining efficiency.
The report provided a month-by-month breakdown of crude allocations and deliveries to domestic refineries.
In January, local refineries received about 22.6 million barrels. February saw a slight decline in performance, with producers offering 19.8 million barrels out of 20.5 million allocated, falling short by around 700,000 barrels.
By March, deliveries improved modestly to 10.1 million barrels, compared to 9.2 million barrels in January and 9.1 million barrels in February, but overall supply remained below expectations.
Despite the slight month-to-month fluctuations, total deliveries still fell significantly short of allocated volumes.
Pricing Disputes Identified as Key Challenge
The Nigerian Upstream Petroleum Regulatory Commission attributed the supply gap largely to pricing disagreements between crude oil producers and domestic refiners.
The Commission explained that Nigeria’s current crude supply framework operates on a “willing buyer, willing seller” basis, meaning transactions depend on mutual agreement on price.
This system, while market-driven, has reportedly led to frequent delays and reduced supply commitments to local refineries.
Despite the shortfall, the regulator said it remains committed to achieving Nigeria’s energy sufficiency goals.
The Commission stressed that ongoing reforms in the oil and gas sector are designed to improve domestic crude availability and strengthen local refining capacity.
However, persistent pricing gaps and delivery inefficiencies continue to challenge efforts to fully optimize domestic refining operations.
