The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says a total of 28.5 million barrels of crude oil were delivered to domestic refineries in the first quarter of 2026 under the Domestic Crude Supply Obligation (DCSO), highlighting persistent supply gaps despite higher volumes offered by producers.
In a report released by the Commission and signed by Head of Media and Corporate Communication, Eniola Akinkuotu, NUPRC said 61.9 million barrels were allocated to local refiners during the period, while oil producers collectively offered 68.7 million barrels—well above the mandated volumes.
However, actual deliveries lagged significantly, translating to a supply conversion rate of between 36 and 46 per cent by the end of Q1 2026.
Monthly Breakdown Shows Persistent Gaps
The Commission disclosed that in January, it directed producers to supply 22.6 million barrels to domestic refineries. Producers exceeded this, offering 25.3 million barrels—an 11.9 per cent increase—but only 9.2 million barrels were ultimately delivered.
In February, allocations stood at 20.5 million barrels, but producers offered slightly lower at 19.8 million barrels. Actual supply dropped further to 9.1 million barrels.
March recorded a marginal improvement, with deliveries rising to 10.1 million barrels. During the same period, allocations were 18.8 million barrels, while producers offered a significantly higher 23.6 million barrels, exceeding targets by 25.5 per cent.
Pricing Disputes Drive Shortfalls
According to the Commission, the gap between crude offered and volumes supplied is largely due to pricing disagreements between oil producers and domestic refiners.
NUPRC noted that the DCSO framework operates on a “willing buyer, willing seller” basis, meaning transactions are ultimately determined by commercial negotiations rather than strict enforcement.
Push for Energy Sufficiency
The Commission said it remains committed to improving supply outcomes under the framework of the Petroleum Industry Act 2021.
It added that efforts are ongoing to refine the DCSO implementation process to enhance transparency and efficiency, while ensuring that local refineries receive crude oil as committed.
The regulator also reiterated its broader objective of supporting Nigeria’s drive towards energy sufficiency by sustaining crude oil production and strengthening domestic refining capacity
