LAGOS — Nigeria offered 68.7 million barrels of crude oil to local refineries in the first quarter of 2026, though actual deliveries lagged significantly behind regulatory targets due to pricing disputes.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported on Tuesday that while producers exceeded the mandated 61.9 million barrel allocation, only 28.5 million barrels were successfully delivered to domestic refiners.
This represents a supply conversion rate of roughly 41%, a shortfall the NUPRC attributed to the “willing buyer, willing seller” framework and persistent price gaps between producers and refiners.
In January, producers offered 25.3 million barrels against a 22.6 million mandate, but only 9.2 million reached refineries. February saw a slight dip, with 9.1 million barrels actually delivered.
March recorded a modest improvement as deliveries rose to 10.1 million barrels. This followed producers offering 23.6 million barrels, significantly exceeding the month’s 18.8 million barrel regulatory allocation.
The data underscores ongoing friction within the Domestic Crude Supply Obligation (DCSO) framework, established under the Petroleum Industry Act (PIA) to ensure feedstock for massive projects like the Dangote Refinery which has become Nigeria’s primary petrol supplier.
“The shortfall between volumes offered and actual deliveries has been attributed primarily to pricing gaps between producers and domestic refiners. The Commission emphasised that the current framework operates on a “willing buyer, willing seller” basis, which continues to shape transaction outcomes.” the regulator stated.
Q1 2026 DCSO Performance Summary
| Metric | January | February | March | Total Q1 |
| NUPRC Allocation | 22.6M bbls | 20.5M bbls | 18.8M bbls | 61.9M bbls |
| Producer Offers | 25.3M bbls | 19.8M bbls | 23.6M bbls | 68.7M bbls |
| Actual Supply | 9.2M bbls | 9.1M bbls | 10.1M bbls | 28.5M bbls |
Source: NUPRC
In recent months, Nigerian refiners have complained that high prices and logistics have hindered access to local crude, forcing some to import cheaper grades from the United States and Brazil.
The Dangote refinery has been importing U.S crude oil after several constraints in securing domestic supply.
However, due to disruptions in the Middle East, Dangote refinery received double domestic allocations in March. ThinkBusiness Africa reported that the refinery received 10 cargoes in March, a significant jump from the previous average of five cargoes per month.
