Follow Us on Google
By Adewale Sanyaolu and Adanna Nnamani, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said oil producers supplied 53.7 million barrels of crude oil and condensate to local refineries in the second quarter of 2026, representing 97.4 per cent performance under the Domestic Crude Supply Obligation (DCSO).
The commission disclosed this in its Q2 2026 DCSO report released in line with Section 109 of the Petroleum Industry Act (PIA) 2021.
The DCSO requires crude oil producers to make specified volumes of crude available to licensed domestic refineries. However, the NUPRC said transactions operate on a “willing buyer, willing seller” basis, which influences the volumes eventually supplied.
According to the report, the commission holds monthly meetings with crude oil producers and local refineries before allocating specific volumes of crude and condensate that producers are expected to offer to domestic refiners.
In April, producers were allocated 18.13 million barrels but offered 19.31 million barrels. Local refineries eventually received 20.88 million barrels, representing 114.9 per cent of the allocated volume.
The situation changed in May, when producers were allocated 18.78 million barrels and offered 23.19 million barrels to refiners. However, only 14.23 million barrels were eventually supplied, representing 75.8 per cent compliance.
In June, producers were allocated 18.17 million barrels but offered 26.84 million barrels to refiners. Domestic refiners eventually took 18.61 million barrels, translating to 102.4 per cent performance.
Other News
The NUPRC said the improvement in domestic crude supply coincided with increased 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 commission also reported significant participation by Dangote Refinery during the quarter.
According to the report, Dangote Refinery required 63 million barrels of crude in Q2, while producers offered 68.1 million barrels.
The volume offered to the refinery represented about 98 per cent of the total crude volumes offered by producers during the period.
However, the refinery eventually accepted 52.6 million barrels, meaning it took about 78 per cent of the crude offered to it.
The figures highlight the difference between crude volumes made available by producers and the quantities ultimately taken by domestic refineries under the DCSO framework.
The NUPRC said it would continue to enforce the domestic crude supply policy as part of efforts to support local refining and reduce Nigeria’s dependence on imported petroleum products.
The commission reaffirmed its commitment to achieving the Federal Government’s energy sufficiency target by using the PIA framework to sustain the recent increase in crude oil production and ensure continued implementation of the DCSO.
