The Nigerian Upstream Petroleum Regulatory Commission has allocated 61.9 million barrels of crude oil to domestic refineries in the first quarter of 2026, against 68.7 million barrels offered by producers. NUPRC disclosed this on Tuesday in its statistics on the enforcement of the Domestic Crude Supply Obligation in accordance with the Petroleum Industry Act’s provisions.

However, it said actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of between 36 and 46 per cent during the review period.

“A breakdown of the DCSO month by month reveals that in the month of January, following consultations with stakeholders, including crude oil producers, the commission mandated producers to supply 22.6 million barrels to the local refiners.

“Producers exceeded expectations, offering 25.3 million barrels, representing a rise of 11.9 per cent, or an additional 2.7 million barrels, in the month. However, 9.2 million barrels were ultimately supplied to local refiners.

“In February, the commission, in discharging its DCSO, allocated 20.5 million barrels to local refineries, but producers offered slightly less at 19.8 million barrels, missing the target by 700,000 barrels. Actual supply was down at 9.1 million barrels,” the report said.

The report showed that in March, deliveries rose modestly to 10.1 million barrels, up from 9.2 million barrels in January and 9.1 million barrels in February.

It said during the same period, DCSO allocations stood at 18.8 million barrels, while producers offered a significantly higher 23.6 million barrels, representing an excess of 4.8 million barrels or 25.5 per cent.

The report added that the shortfall between volumes offered and actual deliveries has been attributed primarily to pricing gaps between producers and domestic refiners.

It restated that the current framework operates on a “willing buyer, willing seller” basis, which continues to shape transaction outcomes.

“In spite of these developments, the commission reaffirms its commitment to achieving the government’s objective of energy sufficiency. Leveraging the framework of the PIA, 2021, the commission aims to sustain recent gains in crude oil production while continuously refining the DCSO methodology to enhance transparency, efficiency, ensuring that local refineries are supplied as committed,” the NUPRC explained. 

(NAN)