The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that several oil producers resisted efforts to allocate crude oil to domestic refineries, including the Dangote Refinery, despite government policy requiring them to do so.

According to a recent report by the commission, many producers formally objected to their assigned supply quotas under the Domestic Crude Supply Obligation (DCSO), either asking for waivers or explaining why they couldn’t meet the monthly targets.

This resistance persisted even after the DCSO rules were officially established in September 2023. In response, NUPRC worked with industry stakeholders—including oil producers, refinery owners, and the NNPC—to develop a fair allocation model that considers each company’s production history and forecast.

Despite assigning crude supply targets in July 2024 to companies producing over 3,000 barrels per day, objections continued. Some producers also protested the inclusion of refinery representatives in monthly production meetings, prompting the commission to suspend their attendance temporarily.

NUPRC stated that it still ensured crude deliveries were made to refineries and received progress updates from NNPC on supply to the Dangote plant. The commission affirmed its commitment to enforcing domestic crude supply rules in line with the Petroleum Industry Act.