LAGOS, Aug 11 – Nigeria’s crude oil and condensate supplies to domestic refineries surged in the second quarter of 2026, signalling a significant improvement in compliance with the country’s domestic crude supply framework.
Oil producers supplied 53.7 million barrels to local refineries between April and June, up approximately 88% from the 28.5 million barrels delivered in the first quarter, according to data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The increase lifted performance under the Domestic Crude Supply Obligation (DCSO) to 97.4% during the quarter, compared with less than half of allocated volumes delivered in the first three months of the year.
The Dangote Petroleum Refinery was by far the largest recipient, taking 52.6 million barrels during the quarter. Its intake represented almost the entire volume of crude and condensate supplied to Nigeria’s domestic refining market during the period.
The figures mark a notable improvement in a supply framework that has been closely watched amid tensions over the availability of locally produced crude for Nigeria’s growing refining capacity.
NUPRC data showed that the 650,000-barrel-per-day Dangote refinery had a crude requirement of 63 million barrels for the second quarter. Producers offered the facility 68.1 million barrels, exceeding its stated requirement by about 5.1 million barrels.
The offer represented approximately 98% of all crude volumes offered to domestic refineries during the quarter. However, Dangote ultimately accepted 52.6 million barrels, equivalent to 78% of the crude offered to it.
The difference between crude offered and crude ultimately purchased is significant under Nigeria’s domestic supply framework. The Petroleum Industry Act operates the arrangement on a “willing buyer, willing seller” basis, meaning commercial factors such as pricing and contractual conditions can determine whether allocated or offered volumes translate into completed transactions.
The second-quarter figures represent a substantial turnaround from the beginning of 2026.
In April, producers were allocated approximately 18.1 million barrels for domestic supply and offered 19.3 million barrels. Actual deliveries reached 20.9 million barrels, equivalent to 114.9% of the allocated volume.
Performance weakened in May, when producers were allocated about 18.8 million barrels and offered 23.2 million barrels, but only 14.2 million barrels were delivered. That represented 75.8% compliance with the allocation.
Domestic supply recovered again in June. Producers delivered 18.6 million barrels against an allocation of approximately 18.2 million barrels, resulting in monthly compliance of 102.4%.
The improvement in the second quarter coincided with higher domestic oil production and the signing of longer-term crude supply agreements between producers and refiners, supported by bankable sale and purchase arrangements, according to the NUPRC.
The stronger flow of crude to domestic refineries could become increasingly important as Nigeria expands its refining capacity and seeks to reduce dependence on imported petroleum products. Sustained access to locally produced crude will be critical to ensuring that the country’s new refining infrastructure can operate at commercially viable levels and translate rising domestic processing capacity into greater fuel supply.
