Nigeria Supplies 67.6 Million Barrels of Crude to Local Refineries, But Demand Still Outpaces Supply
The Federal Government says it delivered over 67.6 million barrels of crude oil to Nigeria’s domestic refineries between January and August 2025. The disclosure, made by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), highlights the government’s push to feed local refineries with more crude. But despite these efforts, the supply is still falling far short of the refiners’ needs.
According to NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, the crude allocation was made under the Petroleum Industry Act (PIA) 2021 and Nigeria’s Domestic Crude Supply Obligation (DCSO) policy. This framework compels producers to reserve a share of their output for domestic use before exporting, with sanctions for non-compliance. The barrels supplied were sent to both modular and state-owned refineries, including Waltersmith, Aradel Energy, and facilities under the Nigerian National Petroleum Company Limited.
However, the volume delivered still lags far behind demand. Local processors had requested about 123.5 million barrels for the first half of 2025 but received just 67.6 million barrels within eight months—roughly 45 per cent less than required to meet refining targets. Analysts say this shortfall undermines Nigeria’s drive to achieve self-sufficiency in petroleum refining.
Refinery owners have long complained about difficulty sourcing crude locally, accusing upstream producers of preferring to sell to international buyers who pay in dollars. Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria, said in July that the “willing buyer, willing seller” pricing model has left local refiners at a disadvantage. With volatile exchange rates and dollar scarcity, he added, domestic processors are often priced out of the very crude they are entitled to under Nigerian law.
Industry observers warn that the imbalance between production and local supply could stall Nigeria’s much-anticipated refining revolution. While the NUPRC insists its allocation shows commitment to domestic refining, stakeholders say partial deliveries are not enough to sustain operations or justify billion-dollar investments. Experts argue that only stronger enforcement, transparent pricing, and incentives for producers will close the crude allocation gap and reduce Nigeria’s dependence on imported fuel.
source: punch