Nigeria’s domestic crude oil and condensate supply to local refineries reached 97.4% of allocated volumes in the second quarter of 2026, with 53.7 million barrels supplied between April and June, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The figure was contained in NUPRC’s second-quarter 2026 statistics on the enforcement of the Domestic Crude Supply Obligation (DCSO), implemented under Section 109 of the Petroleum Industry Act (PIA).
The latest data show that producers supplied more crude than their monthly allocations in April and June, while actual deliveries to domestic refiners fell below the allocated volume in May.
NUPRC attributed the improvement in DCSO performance partly to increased domestic oil production and the signing of long-term crude supply agreements supported by bankable Sales and Purchase Agreements between producers and local refiners.
The Commission said the DCSO is being actively administered and enforced through monthly consultations involving crude oil producers and licensed domestic refineries.
“On a monthly basis, the Commission meets with stakeholders including crude oil producers and local licensed refineries after which the producers are allocated a specific volume of their crude oil and condensate which should be offered to local licensed refineries,” NUPRC stated.
The Commission said the framework operates on a “willing buyer, willing seller” basis in line with the PIA, meaning that volumes offered by producers may not always translate into equivalent quantities ultimately received by refiners.
In April, producers were allocated 18.13 million barrels but offered 19.31 million barrels, while local refiners received 20.88 million barrels. This represented 114.9% performance against the monthly allocation.
In May, 18.78 million barrels were allocated and producers offered 23.19 million barrels. However, actual deliveries to local refiners fell to 14.23 million barrels, representing 75.8% compliance.
In June, producers were allocated 18.17 million barrels and offered 26.84 million barrels, while local refiners received 18.61 million barrels. The monthly performance stood at 102.4%.
The combined supply of 53.7 million barrels during the quarter resulted in an overall DCSO performance of 97.4%.
The figures also highlight the difference between crude volumes offered by producers and quantities ultimately accepted by refiners under the DCSO framework.
The Dangote Refinery accounted for the largest share of crude offered to domestic refiners during the quarter. NUPRC said the refinery required 63 million barrels during the period, while producers offered 68.1 million barrels.
The volume offered represented 98% of all crude volumes offered to the Dangote Refinery. However, the refinery ultimately accepted 52.6 million barrels, equivalent to 78% of the volume offered.
NUPRC said the DCSO framework, established under the 2021 Petroleum Industry Act, is designed to support domestic refining and advance Nigeria’s goal of achieving greater energy sufficiency.
The Commission said it would continue enforcing the obligation while working to sustain recent improvements in domestic crude oil production.
Nigeria’s crude oil production has also continued to strengthen. NUPRC data showed combined crude oil and condensate production rising from 1.483 million barrels per day in February to 1.546 million barrels per day in March, 1.663 million barrels per day in April, 1.700 million barrels per day in May and 1.735 million barrels per day in June.
The June figure represented a 2.2% increase from May and reflected a continued upward trajectory in production over the five-month period.
Earlier in 2026, NUPRC declared Nigeria’s total petroleum reserves at 37.01 billion barrels of crude oil and condensate as of January 1, alongside 215.19 trillion cubic feet of natural gas reserves.
The Nigerian National Petroleum Company Limited (NNPC) has also outlined plans to significantly expand the country’s gas reserves, targeting an increase from about 210 trillion cubic feet to approximately 600 trillion cubic feet.
Under its Gas Master Plan 2026, NNPC is targeting gas production of 10 billion cubic feet per day as part of efforts to support industrialisation and strengthen Nigeria’s energy security.
NNPC reported that crude oil and condensate production averaged 1.72 million barrels per day in June, slightly below the 1.73 million barrels per day recorded in May.
Natural gas production, however, increased to 7.841 million standard cubic feet per day in June from 7.774 million standard cubic feet per day in May, representing a 0.86% increase.
NNPC attributed the slight decline in crude oil and condensate output to operational disruptions, facility integrity issues and subsurface challenges across several assets.
The continued improvement in domestic crude supply and production is expected to remain critical to the performance of Nigeria’s growing refining industry as the government seeks to reduce reliance on imported petroleum products and strengthen domestic energy security.
