Oil producers operating in Nigeria supplied more crude oil to domestic refineries than expected in the second quarter of 2026, according to data released by the Nigerian Upstream Petroleum Regulatory Commission.
The report showed that producers made about 58.8 million barrels of crude available to local refineries during the period. This figure is higher than the 55.1 million barrels originally set under the Domestic Crude Supply Obligation framework, which prioritizes local refining before exports.
Although 55.1 million barrels were officially allocated for the quarter, producers exceeded that target by 3.7 million barrels, indicating stronger supply performance within the domestic market.
The regulator, however, explained that the final amount of crude actually delivered to refineries and converted into refined products is still being verified. A full update is expected after industry reconciliation meetings scheduled for May 2026.
Compared to the first quarter of the year, both allocated and offered volumes declined slightly, even though producers still managed to surpass set targets in both periods.
The supply system continues to be influenced by pricing negotiations and differences in crude grades between producers and refiners. These factors have affected how easily local refineries access feedstock despite Nigeria’s large production capacity.
Some industry operators have argued that commercial terms are also shaping sourcing decisions. In particular, concerns have been raised that major refiners such as the Dangote Petroleum Refinery sometimes turn to imported crude due to pricing structures and compatibility with refinery operations.
To address ongoing concerns, stakeholders including regulators, oil producers, and refinery operators are expected to meet soon to review pricing models, supply commitments, and contract terms.
The Domestic Crude Supply Obligation policy remains central to government efforts to ensure local refineries get priority access to crude, with the broader goal of improving fuel production, reducing imports, and strengthening Nigeria’s energy security.
