LAGOS: Nigerian refineries are grappling with a severe crude shortage, as oil producers delivered just 28.5 million barrels out of the 61.9 million allocated in the first quarter of 2026.
The dramatic shortfall, driven by ongoing pricing disputes, has left domestic processors starved for feedstock and threatens to undermine ambitious efforts to boost local fuel production.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), oil producers were expected to supply 61.9 million barrels to local refineries under the Domestic Crude Supply Obligation (DCSO), and had even offered 68.7 million barrels.
However, just 28.5 million barrels reached their destination—representing roughly 46% of the allocated volume and 41% of the offered volume.
This shortfall highlights the ongoing problems Nigeria faces in boosting local refining and cutting fuel imports, even after reforms under the Petroleum Industry Act.
Experts say the supply gap has widened because the Dangote refinery, Africa’s largest, has frequently cited unreliable local crude supply and pricing disputes as reasons for lower output.
The NUPRC said the main reason for the gap between what was offered and what was delivered is price differences between producers and refiners. The agency emphasised that deals are still made on a “willing buyer, willing seller” basis.
