However, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has only managed to secure 177,777 bpd from oil producers during the first six months, falling short of refinery demands.
The growing disparity between refinery needs and actual supply has led to disputes, particularly with the Dangote Refinery, Africa’s largest, which has criticized the NUPRC for failing to enforce the Domestic Crude Supply Obligation (DCSO).
The DCSO mandates that oil producers allocate a portion of their output to domestic refineries, but the Dangote Refinery reports that this requirement is not being adequately met, forcing it to rely on costlier international crude imports.
The NUPRC attributes the shortfall to operational challenges and pre-existing contracts with traders who funded drilling operations.
Despite these issues, the regulator forecasts an increase in national crude oil production to 1.7 million bpd by December 2024, surpassing earlier projections but still insufficient to meet refinery needs.
Starting in August, eight new refineries with a combined capacity of 864,500 bpd are expected to become operational, intensifying the need for adequate crude oil supply.
The NUPRC, alongside 52 oil producers including major firms like TotalEnergies, Chevron, Shell, and ExxonMobil, is tasked with meeting this increased demand.