By Olakunle Oke
Local refineries in Nigeria received just 28.5 million barrels of crude oil in the first quarter of 2026, despite higher volumes offered by producers under the Domestic Crude Supply Obligation (DCSO), data released by the Nigerian Upstream Petroleum Regulatory Commission has shown.
The Commission disclosed that while 61.9 million barrels were allocated to domestic refiners during the period, producers collectively offered 68.7 million barrels.
However, actual deliveries fell significantly short, with refiners lifting only 28.5 million barrels representing a supply conversion rate of between 36 and 46 per cent.
The figures highlight a persistent disconnect between crude availability and refinery intake, raising fresh concerns over feedstock adequacy as Nigeria pushes to strengthen local refining capacity and reduce dependence on fuel imports.
In a statement issued on Tuesday, the Commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, said the data reflects ongoing enforcement of the DCSO in line with the provisions of the Petroleum Industry Act.
He noted that although producers have demonstrated strong compliance often exceeding allocated volumes—market realities continue to determine final deliveries. According to him, transactions under the DCSO framework operate on a “willing buyer, willing seller” basis, meaning pricing disagreements and commercial considerations frequently limit actual crude uptake by refiners.
A breakdown of the data shows that in January, producers were mandated to supply 22.6 million barrels but exceeded the target by offering 25.3 million barrels. Despite this, only 9.2 million barrels were delivered.
In February, allocations declined slightly to 20.5 million barrels, while producers offered 19.8 million barrels about 700,000 barrels below target. Actual supply dipped marginally to 9.1 million barrels.
March recorded a modest improvement, with deliveries rising to 10.1 million barrels. During the month, 18.8 million barrels were allocated, while producers exceeded expectations by offering 23.6 million barrels, about 25.5 per cent above target.
The Commission attributed the recurring shortfall largely to pricing differences between producers and refiners, stressing that market-driven negotiations continue to shape the pace and volume of crude deliveries.
Despite the gaps, the regulator reaffirmed its commitment to improving crude availability for domestic refining. It said it would continue refining the DCSO framework under the Petroleum Industry Act to enhance transparency, efficiency, and alignment with Nigeria’s energy security objectives.
The DCSO policy was introduced to prioritise crude supply to local refineries and support the country’s drive for energy self-sufficiency. However, the latest figures underscore ongoing structural and commercial challenges that continue to hinder the full realisation of the policy.
