Nigeria’s domestic refining sector received a major boost in the second quarter of 2026, as 53.7 million barrels of crude oil and condensate were supplied to local refineries between April and June, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The figure represents an overall 97.4 per cent performance under the Domestic Crude Supply Obligation (DCSO), highlighting stronger efforts to ensure locally produced crude reaches Nigerian refineries.
The NUPRC said the DCSO is being actively enforced under Section 109 of the Petroleum Industry Act (PIA) 2021. Each month, the Commission meets with crude oil producers and licensed domestic refiners to determine the volume of crude that should be offered to local refineries. However, the process operates on a “willing buyer, willing seller” basis, meaning the final volume supplied can differ from the amount initially allocated.
Performance varied across the three months. In April, producers were allocated about 18.1 million barrels but offered more than 19.3 million barrels, while local refiners eventually received 20.9 million barrels, representing 114.9 per cent performance. May recorded a weaker result, with 14.2 million barrels supplied against an allocation of 18.8 million barrels, translating to 75.8 per cent compliance. By June, performance improved again, with refiners taking about 18.6 million barrels, representing 102.4 per cent performance against the monthly allocation.
The Commission attributed the improvement in domestic crude supply partly to rising local oil production and the signing of long-term crude supply agreements backed by bankable Sales and Purchase Agreements between producers and domestic refiners. The Dangote Refinery remained a major player in the figures, requiring 63 million barrels during the quarter while producers offered 68.1 million barrels. However, the refinery ultimately accepted 52.6 million barrels, about 78 per cent of the volume offered to it.
The latest figures point to a gradual strengthening of Nigeria’s push for domestic energy sufficiency, as regulators seek to ensure more locally produced crude is available for processing at home. The NUPRC said it would continue enforcing the DCSO while supporting efforts to increase crude oil production and strengthen the relationship between producers and domestic refineries. If the momentum continues, greater local crude supply could help Nigeria move closer to reducing its dependence on imported refined petroleum products.
source: newtelegraph
