Nigeria’s domestic refineries took delivery of less than half of the crude oil made available to them in the first quarter of 2026, according to new figures from the Nigerian Upstream Petroleum Regulatory Commission.
Data released by the commission show that oil producers offered 68.7 million barrels of crude between January and March under the Domestic Crude Supply Obligation framework. However, local refiners were able to lift only 28.5 million barrels within the same period.
The commission noted that 61.9 million barrels had been officially allocated to domestic refineries for the quarter. Despite this, actual offtake remained significantly low, translating to a conversion rate of roughly 36 to 46 per cent.
The regulator said the figures reflect ongoing enforcement of the Domestic Crude Supply Obligation as provided in the Petroleum Industry Act, while also highlighting the commercial and structural challenges affecting crude deliveries to local processors.
A month-by-month review shows that in January, producers offered 25.3 million barrels against an allocation of 22.6 million barrels, yet only 9.2 million barrels were eventually supplied. In February, refiners received 9.1 million barrels from an offer of 19.8 million barrels. March recorded a slight improvement, with 10.1 million barrels delivered out of 23.6 million barrels offered.
Using average crude prices for the three months, the total value of crude offered in the quarter was estimated at about $5.17bn.
The data has again drawn attention to the feedstock issues facing local refineries, especially the Dangote Petroleum Refinery, which has continued to source crude from foreign markets to sustain operations despite government efforts to prioritise domestic supply through a naira-for-crude arrangement.
Industry players say the gap between crude offered and crude lifted is largely influenced by pricing differences and crude grade preferences. According to the Crude Oil Refiners Association of Nigeria, many Nigerian producers price their crude using Brent-linked benchmarks at a premium, while some refiners find it more economical to import West Texas Intermediate grades that better suit their refinery configurations.
The association has called for a pricing structure that reflects Nigeria’s domestic refining realities, arguing that this would reduce dependence on imported crude and improve the effectiveness of the supply obligation policy.
Meanwhile, the commission said it remains committed to improving transparency and efficiency in the crude supply system to ensure local refineries receive adequate feedstock in line with Nigeria’s energy security goals.
The Domestic Crude Supply Obligation was introduced to prioritise crude supply to Nigerian refineries and reduce the country’s reliance on imported petroleum products.
However, the latest figures indicate that pricing dynamics and market-driven negotiations continue to limit how much of the offered crude is eventually processed locally.
