- Nigeria supplied 53.7 million barrels of crude and condensate to local refineries in the second quarter of 2026, up about 88% from the previous quarter.
- Africa’s biggest refinery, Dangote, accepted 52.6 million barrels, accounting for almost all the crude supplied to domestic refiners.
- The improvement pushed Nigeria’s Domestic Crude Supply Obligation performance to 97.4%, compared with less than half of allocated volumes delivered in the first quarter.
- Producers offered Dangote 68.1 million barrels, exceeding its 63 million-barrel requirement, although the refinery ultimately accepted 78% of the volume offered.
Oil producers supplied 53.7 million barrels of crude oil and condensate to local refineries between April and June, according to figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday
The volume was about 88% higher than the 28.5 million barrels delivered during the first three months of the year
The increase pushed performance under Nigeria’s Domestic Crude Supply Obligation (DCSO) to 97.4% in the second quarter, a significant improvement from the first quarter, when actual deliveries amounted to less than half the volumes allocated to domestic refiners
Africa’s biggest refinery was the overwhelming recipient. The Dangote Petroleum Refinery accepted 52.6 million barrels during the three months, accounting for nearly all the crude supplied to Nigeria’s domestic refining market
DON’T MISS THIS:Dangote’s planned $5 billion refinery IPO in Nigeria could be followed by a listing in Africa’s richest country
The latest figures point to a significant improvement in a supply system that has been at the centre of tensions between Nigerian crude producers and local refiners
Producers offered Dangote more than its stated requirement
The NUPRC data also provides new insight into the long-running debate over the availability of Nigerian crude to the Dangote refinery
According to the regulator, the 650,000-barrel-per-day refinery required 63 million barrels during the second quarter
Producers offered it 68.1 million barrels, about 5.1 million barrels above that requirement
The volume offered to Dangote represented 98% of all crude offered to Nigeria’s domestic refineries during the quarter
However, the refinery eventually accepted 52.6 million barrels, or 78% of what producers offered
DON’T MISS THIS:Africa’s largest oil producer intends to beat countries like the US and Iran with the world’s most ambitious grassroots refinery pipeline
The distinction is important because crude offered under Nigeria’s domestic supply framework does not automatically translate into a completed sale
The Petroleum Industry Act requires the framework to operate on a “willing buyer, willing seller” basis, leaving commercial considerations including pricing and contractual terms to influence the volumes ultimately purchased
Nigeria reverses weak first-quarter performance
The second-quarter performance represents a sharp reversal from the beginning of 2026
In April, the NUPRC allocated about 18.1 million barrels to producers for domestic supply. Producers offered 19.3 million barrels, while actual supply reached 20.9 million barrels, equivalent to 114.9% of the allocation
Performance weakened in May. Producers were allocated about 18.8 million barrels and offered 23.2 million barrels, but actual supply fell to 14.2 million barrels, representing 75.8% compliance
Supply recovered in June, when 18.6 million barrels reached domestic refiners against an allocation of about 18.2 million barrels, taking monthly performance to 102.4%
The NUPRC said the broader improvement coincided with higher domestic oil production and the signing of long-term crude supply agreements between producers and refiners backed by bankable sales and purchase agreements
Dangote is changing Nigeria’s crude equation
Ensuring reliable domestic crude supplies has become increasingly important since the Dangote refinery began operations
For decades, Nigeria exported much of its crude while relying heavily on imported petrol and other refined petroleum products, exposing the country to foreign-exchange pressures and international fuel-price movements
Dangote’s emergence has begun to alter those trade flows. The $20 billion Lagos facility can process 650,000 barrels of crude per day and has emerged as an important supplier of refined petroleum products to domestic and international markets
Its growing appetite for crude has also created competition between barrels destined for export and those required by Nigeria’s expanding domestic refining industry
That balance could become even more important as Dangote pursues a major expansion of the refinery
The company is targeting an October initial public offering that could raise about $5 billion, Reuters reported last week, with the refinery seeking capital for expansion and other projects
The planned offering could become Africa’s largest-ever stock market listing and has already attracted interest from exchanges and investors across the continent
For Nigeria, the second-quarter figures suggest one of the biggest constraints facing its domestic refining ambitions is easing
The challenge will be sustaining those supplies as refining capacity expands and demand for Nigerian crude from both domestic processors and international buyers continues to compete for the country’s barrels