Nigeria’s domestic refineries received only 28.5 million barrels of crude oil in the first quarter of 2026 despite producers offering 68.7 million barrels, according to new data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In a statement issued on Tuesday, the commission said the statistics were part of its enforcement of the Domestic Crude Supply Obligation (DCSO) under the provisions of the Petroleum Industry Act (PIA), 2021.
|
|
It said a summary of the monthly allocations showed that 61.9 million barrels of crude oil were allocated to domestic refineries between January and March, while producers collectively offered a higher volume of 68.7 million barrels.
“However, actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of 36-46 per cent as of the end of the first quarter (Q1) 2026,” the statement said.
|
|
|
|---|
The data highlights the persistent gap between crude oil volumes allocated, offered, and eventually supplied to local refiners, despite government efforts to prioritise domestic refining and reduce reliance on imported petroleum products.
Monthly breakdown
In January, following consultations with stakeholders, including crude oil producers, the commission explained that it mandated producers to supply 22.6 million barrels to local refiners.
Producers exceeded the target by offering 25.3 million barrels, representing an increase of 11.9 per cent or an additional 2.7 million barrels.
Despite this, the commission noted that only 9.2 million barrels were eventually supplied to local refiners.
In February, the commission allocated 20.5 million barrels to local refineries, but producers offered slightly less at 19.8 million barrels, falling short by 700,000 barrels.
Actual supply for the month dropped slightly to 9.1 million barrels.
In March, deliveries improved modestly to 10.1 million barrels, compared to 9.2 million barrels in January and 9.1 million barrels in February.
During the same period, DCSO allocations stood at 18.8 million barrels, while producers offered 23.6 million barrels, exceeding the target by 4.8 million barrels or 25.5 per cent.
Pricing disputes
The commission attributed the significant shortfall between crude volumes offered and actual deliveries mainly to pricing disagreements between producers and domestic refiners.
It noted that the current framework operates on a “willing buyer, willing seller” basis, which continues to influence transaction outcomes and supply levels.
This means that while producers may meet or exceed their supply obligations on paper, final deliveries depend on successful commercial negotiations between both parties.
Commitment to energy security
Despite the challenges, the commission reaffirmed its commitment to achieving the government’s objective of energy sufficiency through improved domestic refining capacity.
It said it would continue leveraging the framework of the PIA 2021 to sustain recent gains in crude oil production while refining the DCSO methodology to improve transparency and efficiency.
The commission added that efforts are ongoing to ensure local refineries receive crude oil supplies as committed under the domestic supply framework.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
![FRSC Officials [PHOTO CREDIT: @FRSCNigeria]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2020/09/1500x500-1.jpg?fit=1500%2C500&ssl=1)
