The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported a 97.4 per cent performance in Nigeria’s Domestic Crude Supply Obligation (DCSO) in the second quarter of 2026, with 53.7 million barrels of crude oil and condensate supplied to local refineries between April and June.
The latest figures, released by the Commission in line with Section 109 of the Petroleum Industry Act (PIA), highlight a significant push to ensure that crude produced in Nigeria is increasingly channelled to domestic refiners amid efforts to strengthen local refining and reduce dependence on imported petroleum products.
The Commission’s Head of Media and Corporate Communications, Eniola Akinkuotu said the DCSO framework is being actively administered and enforced, with monthly consultations involving crude oil producers and licensed domestic refineries.
Under the arrangement, producers are allocated specific volumes of crude oil and condensate to be offered to local refiners. However, the Commission noted that actual transactions operate under the PIA’s “willing buyer, willing seller” principle, which ultimately influences the volumes supplied and accepted.
April Surpasses Allocation
In April, the NUPRC allocated 18.13 million barrels to producers. Rather than merely meeting the target, producers offered 19.31 million barrels to domestic refiners.
Actual supplies climbed even higher, reaching 20.88 million barrels, representing a remarkable 114.9 per cent performance against the allocated volume.
May Records Sharp Drop
The momentum, however, suffered a setback in May.
The Commission allocated 18.78 million barrels to producers, who offered 23.19 million barrels to local refiners.
But actual uptake fell significantly, with only 14.23 million barrels supplied, representing 75.8 per cent compliance.
The figures underscore the gap that can emerge between crude volumes offered by producers and volumes ultimately taken by domestic refiners under the willing-buyer, willing-seller framework.
June Rebounds Strongly
The sector bounced back in June, with the NUPRC allocating 18.17 million barrels to producers.
Producers again exceeded the allocation, offering 26.84 million barrels to local refiners.
Of that volume, 18.61 million barrels were supplied, translating to 102.4 per cent performance.
The Commission said the overall improvement in DCSO performance coincided with increased domestic crude production and the signing of long-term crude supply agreements backed by bankable Sales and Purchase Agreements between producers and domestic refiners.
Dangote Takes Lion’s Share Of Offers
The report also revealed the dominant role of the Dangote Refinery in the domestic crude market during the quarter.
According to the NUPRC, the refinery required 63 million barrels of crude in Q2 but producers offered it a higher volume of 68.1 million barrels.
The volume offered to the Dangote refinery accounted for 98 per cent of all crude volumes offered to domestic refiners during the period.
However, the refinery ultimately accepted 52.6 million barrels, meaning it took about 78 per cent of the crude offered to it.
The disparity between volumes offered and volumes accepted further highlights the complexities surrounding domestic crude supply, even as producers increasingly meet or exceed regulatory allocations.
The NUPRC said it remained committed to supporting the Federal Government’s objective of achieving greater energy sufficiency through sustained crude production and effective enforcement of the DCSO.
The Commission said it would continue to leverage the framework established by the Petroleum Industry Act 2021 to consolidate recent gains in crude oil production and ensure that domestic refiners have access to locally produced crude.
