Oil companies in Nigeria exported nearly 80 percent of the country’s crude oil production in the first quarter of 2026 despite increasing demand from domestic refineries, including the Dangote Refinery.
Latest data released by the Nigerian Upstream Petroleum Regulatory Commission showed that out of 139.93 million barrels of crude oil produced between January and March 2026, only 28.5 million barrels, representing 20.1 percent, were supplied to local refineries.
This means that about 111.43 million barrels of crude oil were exported during the period even as Nigeria’s domestic refining capacity continued to expand.
The development occurred despite the Commission allocating 61.9 million barrels for local refining under the Domestic Crude Supply Obligation framework. Oil producers collectively offered to supply 68.7 million barrels during the quarter, yet actual deliveries remained significantly below expectations.
According to the Commission, crude oil production in January stood at 50.45 million barrels, but only 9.2 million barrels were supplied to domestic refineries. In February, total production dropped to 41.93 million barrels, while local refiners received 9.1 million barrels. In March, production increased to 47.93 million barrels, but only 10.1 million barrels reached domestic refining facilities.
A breakdown of the Domestic Crude Supply Obligation performance showed that producers often offered volumes above the allocations set by regulators. However, actual supply levels remained low throughout the quarter.
The Commission attributed the persistent gap between volumes offered and actual deliveries mainly to pricing disagreements between crude oil producers and domestic refiners.
According to the regulator, the current arrangement operates on a willing buyer willing seller basis, which continues to affect transaction outcomes and overall supply performance.
Industry data also showed that the Dangote Refinery increasingly relied on imported crude oil during 2025 due to inadequate domestic supply. The refinery reportedly imported millions of barrels from countries including the United States, Brazil and Angola to sustain operations.
Despite the supply challenges, the Commission reaffirmed its commitment to achieving the Federal Government’s energy sufficiency objectives through effective implementation of the Petroleum Industry Act.
Leave a comment