Nigeria’s domestic refineries lifted 28.5 million barrels of crude oil in the first quarter of 2026, far below the 68.7 million barrels made available by upstream producers, according to data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The figures, published under the Domestic Crude Supply Obligation (DCSO) framework, show a persistent gap between supply and actual refinery intake, underscoring ongoing inefficiencies in crude utilisation across the country’s refining sector.
Although 61.9 million barrels were formally allocated to local refiners during the quarter, producers exceeded this by offering a total of 68.7 million barrels. However, only 28.5 million barrels were eventually lifted, translating to a conversion rate estimated at between 36 and 46 per cent.
In a statement issued Tuesday, NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, said the data reflects continued enforcement of the DCSO policy in line with the Petroleum Industry Act. He noted that while upstream companies have largely met or surpassed their supply obligations, actual transactions remain subject to commercial dynamics.
A month-by-month breakdown shows that in January, refiners were allocated 22.6 million barrels, with producers offering 25.3 million barrels. February saw allocations dip to 20.5 million barrels, while offers stood at 19.8 million barrels, slightly below target, with actual supply at 9.1 million barrels.
In March, supply improved modestly as refiners lifted 10.1 million barrels out of 23.6 million barrels offered, against an allocation of 18.8 million barrels — meaning producers exceeded their target supply by more than 25 per cent.
The regulator attributed the shortfall largely to pricing disputes between refiners and producers, stressing that DCSO transactions operate on a “willing buyer, willing seller” basis. This structure means that even when crude is available, deals may not be concluded if commercial terms are not mutually agreed.
The development highlights ongoing structural and market-driven constraints limiting the effectiveness of the DCSO framework, despite its objective of ensuring steady crude supply to local refineries and reducing Nigeria’s reliance on imported refined petroleum products.
NUPRC reiterated its commitment to strengthening implementation of the policy to improve feedstock availability and support the growth of domestic refining capacity.