The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that 67.6 million barrels of crude oil were supplied to domestic refiners in the first eight months of 2025.
The announcement, made on Sunday by the commission’s Head of Media and Strategic Communications, Eniola Akinkuotu, underscores the Federal Government’s effort to enforce the Domestic Crude Supply Obligation (DCSO) under the Petroleum Industry Act (PIA) 2021.
Despite this, the volume falls significantly short of the feedstock required to achieve refining self-sufficiency.
Akinkuotu stated that the crude was delivered to both modular refineries and state-owned facilities, including Waltersmith, Aradel Energy, and plants operated by the Nigerian National Petroleum Company Limited (NNPCL). “A total of 67,657,559 barrels were delivered to local refiners between January and August this year,” he said. “All refiners got that amount within the eight-month period.”
However, this allocation represents only a fraction of what local refiners need. Industry data reveals that processors had requested 123.4 million barrels for the first half of 2025 alone—meaning the actual supply met less than 55% of their demand. This deficit continues to hinder operational efficiency and profitability within the domestic refining sector.
The DCSO policy was designed to ensure a steady supply of crude to local refiners, reducing Nigeria’s dependence on imported refined products and supporting investment in homegrown capacity. Yet, implementation challenges remain. Refiners consistently face obstacles in securing adequate crude, as many upstream operators prefer exporting to international buyers who pay in U.S. dollars.
Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria (CORAN), highlighted this structural imbalance earlier this year. He criticized the “willing buyer, willing seller” model, which was intended to foster market competition but has instead placed local refiners at a disadvantage.
“The willing buyer, willing seller principle was meant to create competitiveness. But in practice, it disadvantages local refiners who cannot match dollar-based offers from international traders,” Idoko said. He noted that foreign buyers’ access to hard currency makes them more attractive partners for oil producers, despite legal obligations to prioritize domestic supply.
Idoko warned that the current system “paradoxically undermines the goal of domestic refining self-sufficiency.” Even with rising national production—crude and condensate output reached 1.63 million barrels per day in August—most volume continues to be exported. In the first quarter of 2025, 82% of Nigeria’s crude was sold abroad.
The NUPRC has repeatedly urged producers to comply with the DCSO, threatening sanctions for non-compliance. But enforcement has been inconsistent, and refiners argue that partial allocations cannot sustain the investments made to boost local capacity.
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