Oil companies in Nigeria exported nearly 80% of the country’s crude oil production in the first quarter of 2026, despite rising demand from domestic refineries such as Dangote Refineries.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that out of 139.93 million barrels produced between January and March, only 28.5 million barrels—about 20.1%—were supplied to local refineries, including the 650,000 barrels‑per‑day Dangote Refinery.
This left 111.43 million barrels for export, even though the Commission had allocated 61.9 million barrels for domestic refining under the Domestic Crude Supply Obligation (DCSO). Producers had offered 68.7 million barrels, but deliveries fell short.
In January, production stood at 50.45 million barrels, with 9.2 million supplied locally. February recorded 41.93 million barrels, but only 9.1 million went to refineries.
March output rose to 47.93 million barrels, yet just 10.1 million was delivered domestically.
A DCSO review showed producers sometimes exceeded allocations. For instance, in March, they offered 23.6 million barrels against an allocation of 18.8 million. However, actual supply remained far below expectations.
The Commission attributed the gap to pricing disagreements between producers and refiners. Current arrangements operate on a “willing buyer, willing seller” basis, which continues to shape transaction outcomes.
“Actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of 36–46% as of the end of Q1 2026,” the NUPRC stated.
Industry data revealed that the Dangote Refinery increasingly relied on imported crude in 2025 due to inadequate domestic supply. It sourced millions of barrels from the United States, Brazil, Angola, and other countries to sustain operations.
Despite Nigeria’s expanding refining capacity, the persistent export dominance raises concerns about this government’s energy policy.
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