The Federal Government says it has supplied over 67.6 million barrels of crude oil to Nigerian refineries between January and August 2025, though the figure falls far short of what operators say they need to meet refining capacity.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that the allocation was made under the Domestic Crude Supply Obligation (DCSO), a framework created by the Petroleum Industry Act to ensure that local processors have access to feedstock before export.
According to NUPRC spokesperson Eniola Akinkuotu, the crude was distributed across both modular and state-owned refineries, including facilities run by Waltersmith, Aradel Energy, and the Nigerian National Petroleum Company Limited.
Despite this allocation, refiners say the supply represents less than half of what was required in the first half of the year. Industry figures had projected demand of about 123.4 million barrels within six months—meaning refiners received around 55.8 million barrels less than expected.
Analysts warn that the persistent shortfall threatens Nigeria’s push for energy self-sufficiency. Although crude production has risen—averaging 1.63 million barrels per day in August—most of it continues to flow to international markets where producers are paid in dollars.
Local refiners argue that this practice undercuts domestic processing. Members of the Crude Oil Refiners Association of Nigeria maintain that the “willing buyer, willing seller” pricing model favors foreign traders with access to hard currency, leaving domestic plants unable to compete.
“The paradox is that we are exporting crude while our local facilities starve,” said CORAN’s Publicity Secretary, Eche Idoko, who has previously faulted the weak enforcement of DCSO provisions.
Industry observers fear the imbalance could slow down Nigeria’s refining revolution, especially as billions of dollars have been invested in plants such as Port Harcourt, Warri, and the Dangote Refinery.
The NUPRC insists that the 67 million barrels already delivered this year reflect its commitment to domestic supply, but stakeholders argue that stronger enforcement and a more transparent pricing system are needed to close the gap.
Until then, Nigeria’s reliance on imported petroleum products is likely to continue, despite ongoing investments in local refining capacity.
