Nigeria’s struggle to balance crude exports with local refining deepened after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed that refiners rejected about 11 million barrels of crude oil made available for domestic processing.
NUPRC Chief Executive, Gbenga Komolafe, represented by Boma Atiyegoba at the Crude Oil Refinery-Owners Association of Nigeria (CORAN) summit in Lagos, said that although refiners frequently complain of inadequate crude supply, data shows otherwise.
Using April as an example, he explained that out of 48 cargoes available for export, 21 were reserved for domestic refining under the Domestic Crude Supply Obligation (DCSO). However, only 10 cargoes were lifted, while 11 went unclaimed.
Komolafe noted that most of the rejected cargoes were due to pricing disagreements and crude grade specifications. “Out of the 11 cargoes not taken, eight were declined over pricing differences, while three were due to crude specifications. It’s not that crude wasn’t available — it’s mainly commercial and technical issues,” he said.
He stressed that the commission allows crude trading under a “willing buyer, willing seller” principle, adding that global oil price variations often complicate negotiations between producers and refiners.
Industry players, however, argue that local refineries are still facing serious challenges in accessing crude. Executive Secretary of the African Refiners and Distributors Association, Anibor Kragha, said Nigerian refiners must diversify the range of crude blends they can process to improve efficiency.
CORAN Vice-Chairman, Dolapo Okulaja, disagreed with NUPRC’s position, stating that refineries are struggling to obtain sufficient crude despite legal provisions under the Petroleum Industry Act (PIA). “If a refinery is built to handle 20,000 barrels daily but only receives 5,000, that’s not sustainable,” she said.
Okulaja also highlighted infrastructure gaps, noting that many refiners rely on trucks for crude delivery due to inadequate pipeline networks — a costly and inefficient alternative.
CORAN President, Momoh Oyarekhua, further faulted the PIA’s “willing buyer, willing seller” clause, arguing that it contradicts the intent of ensuring domestic crude allocation. “You cannot have an obligation and still attach a condition,” he said.
The unresolved dispute underscores Nigeria’s ongoing challenge of meeting both domestic refining and export goals — a key hurdle in achieving energy self-sufficiency and reducing fuel imports.
