Local refiners lift 28.5m barrels of 68.7m offered in Q1 — NUPRC

Nigeria's ambition to revitalize its refining sector faces persistent headwinds, as evidenced by the stark figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the first quarter of 2026. Despite allocations and offers exceeding 60 million barrels, local refineries only managed to lift a mere 28.5 million barrels of crude oil. This significant shortfall, translating to a conversion rate of just 36-46 percent, paints a grim picture of the challenges plaguing domestic refining operations.

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The Nigerian Upstream Petroleum Regulatory Commission has released the statistics on the enforcement of the Domestic Crude Supply Obligation (DCSO) in accordance with the provisions of the Petroleum Industry Act.

The NUPRC, through its Head of Media and Corporate Communications, Eniola Akinkuotu, has confirmed these statistics, emphasizing the ongoing enforcement of the Domestic Crude Supply Obligation (DCSO) under the Petroleum Industry Act. While producers have shown a willingness to meet and even surpass supply targets, the reality on the ground is that market dynamics continue to dictate the actual volume of crude reaching the refineries. This disconnect raises serious questions about the feedstock adequacy crucial for Nigeria's refining aspirations.

From a Nigerian perspective, this situation is deeply frustrating. We possess abundant crude oil resources, yet we struggle to translate this potential into refined products domestically. The narrative often focuses on the need for investment in refining capacity, but this data highlights a critical bottleneck in the supply chain itself. The gap between offered and delivered crude suggests issues beyond mere production capacity, potentially involving logistical challenges, pricing discrepancies, or even deliberate market manipulations that favor export over domestic processing.

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A summary of the monthly allocation shows that 61.9 million barrels of crude oil were allocated to domestic refineries during the quarter, while producers collectively offered a higher volume of 68.7 million barrels. However, actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of 36-46 per cent as of the end of the first quarter (Q1) 2026.

While international coverage might focus on the technical aspects of crude supply, the local impact is far more profound. It means continued reliance on imported refined products, draining foreign exchange reserves and hindering the development of a robust downstream sector that could create jobs and foster economic diversification. The NUPRC's data, while factual, underscores a systemic problem that requires more than just regulatory oversight; it demands a comprehensive strategy to ensure that our own crude oil serves our own refining needs effectively.

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The Commission has continued to enforce the provisions of the Domestic Crude Supply Obligation in accordance with the Petroleum Industry Act. While producers have demonstrated strong compliance by offering volumes above allocated thresholds in several instances, actual supplies to domestic refiners remain constrained by prevailing commercial dynamics.