Nigerian Refineries Receive Less Than Half of Allocated Crude

The Nigerian Upstream Petroleum Regulatory Commission reported that domestic refineries received only 28.5 million barrels of crude oil in the first quarter of 2026. This figure represents less than half of the 61.9 million barrels allocated under the Domestic Crude Supply Obligation (DCSO), resulting in a supply conversion rate between 36 and 46 percent.

Monthly deliveries remained stagnant throughout the quarter, with 9.2 million barrels in January, 9.1 million in February, and 10.1 million in March. Although oil producers offered 68.7 million barrels—exceeding the total allocation—actual deliveries failed to materialize due to pricing gaps. The commission noted that transactions operate on a willing buyer, willing seller principle, which allows commercial dynamics and pricing differentials to dictate the volume of deliveries.

This supply instability has constrained output at the Dangote Petroleum Refinery & Petrochemicals Fze, Africa's largest refinery. To compensate for the local shortfall, the refinery procured crude oil from the United States, a move that subsequently impacted domestic petrol prices.

To address these inefficiencies, the commission is currently refining the DCSO methodology under the Petroleum Industry Act of 2021. The regulator aims to improve transparency and ensure domestic refineries are adequately supplied to reduce Nigeria's reliance on imported petroleum products and achieve national energy sufficiency.