Tuesday, May 12, 2026 - Oil companies in Nigeria exported about 80 percent of the country’s crude oil production in the first quarter of 2026 despite rising demand from domestic refineries.
Latest data released by the Nigerian Upstream Petroleum
Regulatory Commission showed that out of the 139.93 million barrels of crude
oil produced in the first three months of the year, only 28.5 million barrels,
representing 20.1 percent, were supplied to local refineries, including the
650,000 barrels-per-day Dangote Refinery.
This means that 111.43 million barrels of crude oil,
representing nearly 80 percent of total production, was exported despite the
country’s expanding domestic refining capacity.
The development occurred despite the Commission allocating
61.9 million barrels for local refining under the Domestic Crude Supply
Obligation (DCSO) framework, while producers collectively offered to supply
68.7 million barrels during the quarter.
According to the NUPRC, oil companies produced 50.45 million
barrels in January, but only 9.2 million barrels was supplied to local
refineries. In February, total crude oil production stood at 41.93 million
barrels, while domestic refiners received 9.1 million barrels, representing
about 22 percent of total output.
Similarly, in March, crude oil production rose to 47.93
million barrels, but only 10.1 million barrels was delivered to local
refineries, leaving 37.83 million barrels for export.
A breakdown of the DCSO performance showed that in January,
the Commission allocated 22.6 million barrels to domestic refiners following
consultations with stakeholders, including crude oil producers.
Producers exceeded the target by offering 25.3 million
barrels, 11.9 percent above the allocation, but actual supply to local
refineries stood at only 9.2 million barrels.
In February, the Commission allocated 20.5 million barrels
for domestic refining, while producers offered 19.8 million barrels, falling
short of the target by 700,000 barrels. In March, DCSO allocations stood at
18.8 million barrels, while producers offered 23.6 million barrels, exceeding
the target by 4.8 million barrels.
The Commission attributed the persistent gap between crude
volumes offered and actual deliveries mainly to pricing disagreements between
producers and domestic refiners. According to the NUPRC, the current supply
arrangement operates on a “willing buyer, willing seller” basis, which
continues to influence transaction outcomes and supply performance.
“However, actual supply to local refineries was 28.5 million
barrels, translating to a supply conversion rate of 36-46 per cent as of the
end of the first quarter (Q1) 2026,” the Commission stated.
Industry data showed that the Dangote Refinery increasingly
relied on imported crude oil in 2025 due to inadequate domestic supply,
importing millions of barrels from the United States, Brazil, Angola and other
countries to sustain operations
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