Nigeria’s domestic refiners failed to lift crude oil worth an estimated $3.13bn in the first quarter of 2026, despite increased volumes made available by producers under the Domestic Crude Supply Obligation (DCSO) framework, fresh data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has shown.
Analysis of the figures shows that while crude producers collectively offered 68.7 million barrels between January and March, actual refinery offtake stood at just 28.5 million barrels, leaving a supply gap of about 40.3 million barrels. The development highlights the growing disconnect between crude availability and refinery demand, even as Nigeria pushes to expand local refining capacity and reduce dependence on imported fuel.
The Commission disclosed that 61.9 million barrels were officially allocated to domestic refiners during the period, but deliveries continued to trail expectations due to pricing disagreements, crude grade mismatches, and prevailing commercial conditions under the “willing buyer, willing seller” arrangement. January recorded the largest shortfall, with refiners lifting only 9.2 million barrels out of 25.3 million barrels offered. In February, refiners took 9.1 million barrels from 19.8 million barrels offered, while March closed with 10.1 million barrels lifted out of 23.6 million barrels supplied by producers.
Industry stakeholders say the situation is worsening pressure on Nigeria’s refining ambitions, particularly as major plants including the Dangote Petroleum Refinery continue to seek more commercially competitive crude supply options. The Crude Oil Refiners Association of Nigeria (CORAN) said domestic pricing structures and crude grade compatibility issues are pushing some refiners toward imported crude, especially West Texas Intermediate (WTI), which operators say offers better economics compared to locally priced Brent-linked grades.