Domestic crude supply to Nigeria’s refineries declined to 15.84 million barrels in May 2026, even as the facilities recorded a combined intake of 17.92 million barrels for the month, according to the latest midstream and downstream statistics released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The NMDPRA fact sheet shows that domestic crude supply dropped from 17.96 million barrels in April, indicating a month-on-month decline despite continued dominance of locally sourced feedstock in refinery operations.
Imports remained relatively low at 2.08 million barrels in May, meaning domestic crude still accounted for about 88.4 per cent of total refinery receipts during the period.
The development has triggered renewed industry concerns, with stakeholders pointing to possible disruptions in the domestic crude supply chain and allegations of sabotage raised by the Dangote Petroleum Refinery regarding inconsistent crude delivery.
Despite the decline in May, refinery operations across the country demonstrated resilience, with total intake still reflecting continued reliance on local crude sources as Nigeria attempts to reduce dependence on imported feedstock.
Monthly data shows fluctuating domestic supply levels in 2026, rising from 8.83 million barrels in January to 8.86 million barrels in February, then increasing sharply to 11.49 million barrels in March before peaking in April and declining in May.
Total crude receipts across refineries reached a high of 20.92 million barrels in March before easing in subsequent months, while imported crude peaked at 9.43 million barrels in the same month.
The report also highlighted intermediate and blendstock intake at the Dangote Petroleum Refinery, which stood at 240.59 million litres in May. This followed higher inflows earlier in the year, including 658.31 million litres in January and 306.89 million litres in February.
Industry tensions remain elevated following allegations by the Dangote refinery that government-linked entities have failed to ensure adequate crude supply, claims the Federal Government has denied.
The refinery has argued in court filings that it relies heavily on crude supply arrangements with the Nigerian National Petroleum Company Limited (NNPC Ltd), which it described as central to its operations.
It further alleged that current allocations fall short of operational requirements, stating that it receives about five crude cargoes per month compared to the 13 cargoes needed for full capacity production.
The NNPC has rejected allegations of sabotage, insisting there is no deliberate effort to undermine local refining capacity or the $20 billion investment in the sector.
Meanwhile, the Crude Oil Refinery Owners Association of Nigeria (CORAN) has stated that modular refineries rely largely on private crude supply arrangements rather than direct federal allocations, underscoring the fragmented nature of domestic feedstock sourcing.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also disclosed that domestic refiners left an estimated $3.13 billion worth of crude oil unlifted in the first quarter of 2026, despite significant volumes being made available under the Domestic Crude Supply Obligation (DCSO).
According to the commission, while 61.9 million barrels were allocated during the period, only 28.5 million barrels were actually lifted due to pricing disputes, grade mismatches and market-driven challenges.
Amid these supply constraints, the Dangote Petroleum Refinery continued to operate above capacity, recording an average utilisation rate of 101.25 per cent in May.
The refinery produced an average of 44.7 million litres per day of petrol, 24.5 million litres of diesel and 21.9 million litres of aviation fuel, while also exporting significant volumes of jet fuel.
Closing stock levels at the end of May stood at 9.4 million litres for petrol, 6.2 million litres for diesel and 7.3 million litres for aviation fuel, reflecting continued output stability despite upstream supply challenges.
Analysts say the persistent fluctuations in domestic crude supply highlight ongoing structural and commercial challenges in Nigeria’s oil sector, particularly around infrastructure constraints, pricing frameworks and enforcement of supply obligations.
