Domestic Refineries Got 28.5 Million Barrels of Crude in Q1 Despite 61.9 Million-Barrel Allocation

Domestic refineries in Nigeria received 28.5 million barrels of crude oil in the first quarter of 2026, despite being allocated 61.9 million barrels under the Domestic Crude Supply Obligation.

The figures were released by the Nigerian Upstream Petroleum Regulatory Commission, which said crude producers were collectively offered an even higher volume of 68.7 million barrels during the period.

The data shows a wide gap between allocation, offers, and actual delivery. According to the commission, the actual supply to local refineries translated to a conversion rate of about 36 to 46 per cent by the end of March 2026.

The Domestic Crude Supply Obligation is part of the Petroleum Industry Act. It is designed to ensure that local refineries get crude oil supply to support domestic refining and reduce dependence on imported petroleum products.

January supply beats offer target but delivery remains low

In January, the commission directed producers to supply 22.6 million barrels to local refiners after consultations with stakeholders.

Producers offered 25.3 million barrels, which was 2.7 million barrels above the target. However, only 9.2 million barrels were eventually delivered.

February records lower crude delivery

In February, local refineries were allocated 20.5 million barrels, but producers offered 19.8 million barrels.

That was 700,000 barrels below the target. Actual supply fell slightly to 9.1 million barrels.

March sees modest improvement

March recorded a slight improvement. Deliveries rose to 10.1 million barrels, compared with 9.2 million barrels in January and 9.1 million barrels in February.

For the month, DCSO allocation stood at 18.8 million barrels, while producers offered 23.6 million barrels. That was 4.8 million barrels above the required volume.

Pricing gaps slow crude delivery

The commission attributed the gap between crude offered and crude delivered mainly to pricing disagreements between producers and local refiners.

It also explained that the current arrangement operates on a willing buyer, willing seller basis. This means crude supply transactions still depend on commercial agreements between producers and refiners, even where allocations have been made.

The shortfall highlights one of the biggest challenges facing Nigeria’s domestic refining push.

While the country is trying to increase local refining capacity, supply bottlenecks, pricing disputes, and market negotiations continue to affect how much crude actually reaches refineries.

NUPRC promises stronger crude supply framework

The NUPRC said it remains committed to the government’s goal of energy sufficiency.

It added that it would continue to use the Petroleum Industry Act framework to improve transparency, efficiency, and crude supply to domestic refineries.