Local refiners get 46% of promised crude oil in Q1

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has stated that local refiners got 46 per cent of Domestic Crude Supply Obligation (DCSO) promised to in the first quarter of 2026. A statement by NUPRC’s Head, Media and Corporate Communication, Eniola Akinkuotu, said monthly allocation showed that 61.9 million barrels of crude oil were allocated to […]

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has stated that local refiners got 46 per cent of Domestic Crude Supply Obligation (DCSO) promised to in the first quarter of 2026.
A statement by NUPRC’s Head, Media and Corporate Communication, Eniola Akinkuotu, said monthly allocation showed that 61.9 million barrels of crude oil were allocated to domestic refineries during the quarter, 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 shortfall between volumes offered and actual deliveries has been attributed primarily to pricing gaps between producers and domestic refiners.
Daily Trust recalls that the shortfall had forced Dangote Refinery to secure crude oil supply from the United States of America, which in turn affects the price of petrol in the country.
But the commission emphasised that the current framework operates on a “willing buyer, willing seller” basis, which continues to shape transaction outcomes.
“A breakdown of the DCSO month by month reveals that in the month of January, following consultations with stakeholders, including crude oil producers, the Commission mandated producers to supply 22.6 million barrels to the local refiners.”
It added that producers exceeded expectations, offering 25.3 million barrels, representing a rise of 11.9 per cent, or an additional 2.7 million barrels, in the month. However, 9.2 million barrels were ultimately supplied to local refiners.
It went on to state that in February, the commission, in discharging its DCSO, allocated 20.5 million barrels to local refineries, but producers offered slightly less at 19.8 million barrels, missing the target by 700,000 barrels. Actual supply was down at 9.1 million barrels.
“In March, there was a modest improvement in deliveries, which rose to 10.1 million barrels, up from 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 a significantly higher 23.6 million barrels, representing an excess of 4.8 million barrels or 25.5 per cent.”

 

Despite these developments, the Commission reaffirmed its commitment to achieving the government’s objective of energy sufficiency.

 

Leveraging the framework of the PIA, 2021, the Commission aims to sustain recent gains in crude oil production while continuously refining the DCSO methodology to enhance transparency, efficiency, ensuring that local refineries are supplied as committed.