Oil producers offered 68.7m barrels in Q1…. but local refineries bought only 28.5m – NUPRC

The Nigerian Upstream Petroleum Regulatory Commission says only 28.5 million barrels of crude oil were supplied to domestic refineries in the first quarter (Q1) of 2026, despite producers offering significantly higher volumes.

In a report on the enforcement of the Domestic Crude Supply Obligation (DCSO) on Tuesday, the commission said 61.9 million barrels were allocated to local refineries during the period, while producers offered 68.7 million barrels.

However, actual supply stood at 28.5 million barrels, translating to a conversion rate of between 36 and 46 percent.

The commission attributed the gap between volumes offered and delivered to pricing disagreements between producers and refiners.

“The shortfall between volumes offered and actual deliveries has been attributed primarily to pricing gaps between producers and domestic refiners,” the report said.

The commission said the current framework operates on a “willing buyer, willing seller” basis, which continues to shape transaction outcomes.

Further breakdown of the data shows that in January, the commission mandated the supply of 22.6 million barrels following consultations with stakeholders.

“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,” NUPRC said.

“However, 9.2 million barrels were ultimately supplied to local refiners.”

In February, the commission said 20.5 million barrels were allocated, while producers offered 19.8 million barrels, falling short by 700,000 barrels.

NUPRC said actual supply declined slightly to 9.1 million barrels.

According to the oil regulator, deliveries improved marginally to 10.1 million barrels in March — up from 9.2 million barrels in January and 9.1 million barrels in February.

“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 percent,” it added.

Despite the supply gap, the commission reaffirmed its commitment to ensuring energy sufficiency in line with the Petroleum Industry Act.

The NUPRC said it will continue to refine the DCSO framework to improve transparency and efficiency while sustaining crude oil production and ensuring adequate supply to domestic refineries.(TheCable)