A severe shortage in crude oil supply has kept Nigeria’s refineries from reaching full operational capacity, with current utilization standing at only 57.8%.

This leaves over 42% of the country’s refining capacity idle.The combined capacity of Nigeria’s 10 operational refineries is 1.2 million barrels per day, but technical constraints and a lack of sufficient crude feedstock have been significant barriers to full production.

Currently, Nigeria’s state-owned, private, and modular refineries produce just 701,692 barrels per day, falling short by more than 500,000 barrels.

Eche Idoko, National Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, expressed concern about the persistent unavailability of crude oil, which has hindered investments in both new and existing refineries. Idoko noted, “Crude availability is a major issue, and the news about the unavailability of crude to refineries that are already operating is not making our case easier.”

This situation has been exacerbated despite the Federal Government’s efforts to secure adequate crude supply through its Domestic Crude Supply Obligation (DCSO).

The government mandated 770,500 barrels per day for the first half of 2025, but compliance has been weak, with some refineries, including the Dangote Refinery, forced to import crude from abroad to sustain operations.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has cited technical constraints and crude supply shortages as the primary factors limiting refinery performance.

This issue, along with weak downstream infrastructure, underscores the challenges in reducing Nigeria’s dependency on imported petroleum products.

The underutilization of these refineries comes at a time when gas processing plants have been more successful, operating at 63% of their installed capacity.

However, Nigeria’s gas transportation and distribution networks continue to struggle with low utilization rates.

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