JUST IN: Nigeria’s Refiners receive 67.6m barrels of Crude amid supply shortfalls

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The Federal Government has confirmed that 67,657,559 barrels of crude oil were allocated to local refiners for processing between January and August 2025.

According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the figure underscores the persistent supply gaps hindering indigenous refineries despite Nigeria’s increasing production levels.

Speaking in Abuja on Sunday, NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, explained that the allocations were made under the provisions of the Petroleum Industry Act (PIA) 2021 and the Domestic Crude Supply Obligation (DCSO) framework.

“A total of 67,657,559 barrels were delivered to local refiners between January and August this year. All refiners got that amount within the eight-month period,” Akinkuotu said.

The supply, however, fell significantly short of refiners’ needs. Processors had requested 123,480,500 barrels for the first half of 2025 but received 55,822,941 barrels less than that target—about 45 per cent below their requirement.

The DCSO framework mandates oil producers to set aside part of their output for local refiners before exporting, with penalties for non-compliance. The goal is to ensure feedstock availability for domestic processors and reduce Nigeria’s dependence on imported petroleum products.

Earlier in the year, the NUPRC projected that plants such as Port Harcourt, Warri, and Dangote, among others, would require 770,500 barrels per day, or 23.8 million barrels monthly—totaling 123.4 million barrels for the first half of 2025. Actual allocations, however, lagged behind these estimates.

Meanwhile, crude and condensate production climbed to 1.63 million barrels per day in August, but a large share still went for export.

For months, refinery operators have voiced frustrations over their inability to secure crude locally, accusing producers of prioritizing dollar-paying foreign buyers.

Publicity Secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Eche Idoko, lamented that Nigeria’s push for refining self-sufficiency was being undermined by unclear policies and economic contradictions. He criticized the implementation of the DCSO and the Domestic Crude Refining Requirement, saying refiners are disadvantaged under the “willing buyer, willing seller” pricing model.

“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 added: “This market liberalisation paradoxically undermines the goal of domestic refining self-sufficiency.”

Idoko explained that foreign traders’ easy access to hard currency makes them more appealing to oil producers, while local refiners—struggling with exchange rate volatility—are often priced out of the very crude they are legally entitled to.

Despite the government’s commitment to prioritizing domestic refining, data showed that in Q1 2025, as much as 82 per cent of Nigeria’s output was exported, leaving local refineries grappling with shortages.

Industry experts warn that if not addressed, this imbalance could derail Nigeria’s refining revolution, where both state-owned and private facilities are expected to slash the country’s heavy import bill on refined petroleum products.

While the NUPRC has consistently directed oil firms to honor the DCSO, enforcement has been weak. Compliance levels remain below expectations despite repeated sanctions threats.

The regulator maintains that allocating over 67 million barrels in eight months demonstrates its support for local refining. But refiners counter that partial allocations cannot sustain efficient operations or justify the billions invested in capacity expansion.

Observers say bridging the allocation gap will require firmer enforcement, clearer pricing frameworks, and incentives to balance the interests of producers and refiners.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post