Nigeria Allocated 61.9 Million Barrels to Local Refineries in Q1 2026 — But Only 28.5 Million Were Delivered

Nigeria’s domestic refining sector received just 28.5 million barrels of crude oil in the first quarter of 2026 — less than half of the 61.9 million barrels allocated under the country’s Domestic Crude Supply Obligation, new data from the Nigerian Upstream Petroleum Regulatory Commission shows.

What the Numbers Say

The NUPRC data, which covers January through March 2026, reveals a significant gap between what was supposed to flow to local refineries and what actually arrived. Of the 61.9 million barrels allocated under the DCSO framework established by the Petroleum Industry Act, only 46 per cent — approximately 28.5 million barrels — made it to domestic facilities.

The Dangote Refinery, which has been the primary recipient of domestic crude allocations since it began operations, was among those that received less than expected. Other local refinery facilities also reported shortfalls.

Why Is This Happening?

The gap between allocation and delivery is not purely logistical. Crude oil producers have been in ongoing disputes with local refiners over pricing — specifically, whether domestic supply should be priced at international market rates or at a discount to encourage local refining. Some producers have reportedly preferred to sell internationally where pricing is clearer, rather than deliver domestically under terms they contest.

The NUPRC data showing that producers actually offered more volumes than were allocated in some periods — but delivery still fell short — suggests the bottleneck is partly commercial and partly operational.

The Bigger Stakes

Nigeria’s push for local refining is a cornerstone of its energy policy. The goal is to stop exporting crude and importing refined products — a loop that has cost the country enormous amounts in foreign exchange. Dangote’s refinery was supposed to be the turning point. The Q1 2026 data shows that actualising that vision is still very much a work in progress.

Sources: Channels Television, Daily Trust, Nairametrics, AllAfrica