Nigeria Supplies Less Than Half of Allocated Crude to Local Refineries in Q1

Mintesinot Niggusie

Nigerian Upstream Petroleum Regulatory Commission said crude oil producers delivered less than half of the volumes earmarked for domestic refineries in the first quarter of 2026, as pricing disputes continued to disrupt supply.

The regulator reported that 61.9 million barrels were allocated to local refineries under the Domestic Crude Supply Obligation, while producers made 68.7 million barrels available. Actual deliveries reached 28.5 million barrels, equivalent to about 46 percent of allocated volumes and 41 percent of offered supply.

The shortfall points to persistent friction in Nigeria's efforts to expand domestic refining capacity and cut reliance on imported fuels, despite reforms introduced under the Petroleum Industry Act to improve crude availability for local processors.

Analysts say the gap reinforces concerns raised by the Dangote Refinery over inconsistent domestic supply and unresolved pricing disagreements, which have constrained throughput at the facility and slowed progress toward retaining more value within the country's oil sector.

The regulator attributed the mismatch between offered and delivered volumes primarily to pricing differences between producers and refiners, noting that transactions continue to be conducted on a "willing buyer, willing seller" basis.