Dangote refinery rejects 15.5m barrels of crude in Q2, NUPRC reports

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The Dangote Petroleum Refinery rejected about 15.5 million barrels of crude oil offered by producers in the second quarter of 2026, according to data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

However, the refinery has disputed the claim, challenging the regulator to provide detailed statistics showing the crude volumes allegedly offered and rejected during the period.

The NUPRC disclosed the figures in its Q2 2026 Domestic Crude Supply Obligation (DCSO) Enforcement Report, released on Monday.

According to the report, oil producers offered 68.1 million barrels of crude to the Dangote refinery between April and June, while the refinery accepted 52.6 million barrels, representing 78 per cent of the total volume offered.

The regulator said the refinery had indicated a requirement for 63 million barrels during the quarter, but producers offered 68.1 million barrels, exceeding the refinery’s stated requirement.

“At the level of refinery participation, the statistics show that the Dangote Refinery required 63 million barrels in Q2, but the producers offered higher volumes of 68.1 million barrels,” the NUPRC stated.

“Eventually, 52.6 million barrels were accepted by the Dangote refinery. This implies that the refinery only accepted 78 per cent of what it was offered.”

The development was contained in the commission’s assessment of compliance with the Domestic Crude Supply Obligation, established under the Petroleum Industry Act to ensure that crude producers make sufficient supplies available to domestic refineries.

The NUPRC said a total of 53.7 million barrels of crude oil and condensate were supplied to local refineries between April and June, representing an overall DCSO performance rate of 97.4 per cent.

According to the commission, the DCSO framework is being administered through monthly consultations involving crude producers and licensed domestic refineries.

It, however, noted that the framework operates under the “willing buyer, willing seller” principle in accordance with the PIA, meaning that actual transactions are ultimately determined by commercial agreements between buyers and sellers.

The NUPRC reported that in April, producers were allocated 18.13 million barrels and offered 19.31 million barrels to domestic refiners. Actual supply reached 20.88 million barrels, representing 114.9 per cent performance against the allocation.

In May, producers were allocated 18.78 million barrels and offered 23.19 million barrels to local refiners.

However, actual supply fell to 14.23 million barrels, translating to 75.8 per cent compliance.

In June, producers were allocated 18.17 million barrels and offered 26.84 million barrels to refiners, while actual supply stood at 18.61 million barrels, representing 102.4 per cent performance.

The commission attributed the improvement in domestic crude supply compliance to increased local oil production and the signing of long-term crude supply agreements supported by bankable sales and purchase agreements between producers and domestic refiners.

“The commission observed that the improvement in DCSO coincided with an increase in local oil production and the signing of the long-term crude supply agreement supported by bankable sales and purchase agreements between the producers and domestic refiners,” it said.

The regulator reaffirmed its commitment to enforcing the DCSO as part of efforts to achieve the Federal Government’s energy sufficiency objectives and sustain recent gains in domestic crude production.

Reacting to the NUPRC report, Dangote Petroleum Refinery spokesman, Anthony Chiejina, challenged the commission to provide evidence of the crude volumes it said were offered to and rejected by the refinery.

Chiejina said the refinery would compare the regulator’s records with its own data once the detailed statistics and dates of the alleged crude offers were provided.

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“Let them show us the statistics, we’ll now compare and check, and then we’ll come back to you,” he said.

He questioned the basis for making the claim without providing detailed transaction records.

“Because they can’t just by word of mouth tell you, ‘Oh, we give this to Dangote’. It’s crude, it’s not pepper,” Chiejina said.

He added: “If they have the statistics, let them send it to us and the period it was done, then I will now come back to you to match it.”

The conflicting positions highlight continuing challenges around the implementation of Nigeria’s domestic crude supply policy, particularly as the country seeks to increase crude availability to local refineries and reduce dependence on imported petroleum products.

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