Federal Government Reports 67.6m Barrels Supplied to Domestic Refineries

The Federal Government has revealed that 67,657,559 barrels of crude oil were delivered to domestic refineries for processing between January and August 2025.

The figure, confirmed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), underscores the persistent gap between crude allocations and the actual demand of local refiners, despite an increase in national production levels.

Speaking in Abuja on Sunday, the Head of Media and Strategic Communications at the NUPRC, Eniola Akinkuotu, said the allocations were made in line with the Petroleum Industry Act (PIA) 2021 and the Domestic Crude Supply Obligation (DCSO) framework. He explained that the crude was distributed to both modular and state-owned facilities, including Waltersmith, Aradel Energy, and refineries operated by the Nigerian National Petroleum Company Limited.

However, the supply fell significantly short of refiners’ needs. Local processors had requested 123.48 million barrels for the first half of the year, meaning they received about 55.8 million barrels—or 45 per cent—less than required to meet their targets.

The DCSO requires upstream producers to reserve a share of crude for domestic processors before exporting, with sanctions for non-compliance. The framework was designed to guarantee feedstock for local plants and reduce reliance on imported fuel. Earlier projections indicated that facilities such as Port Harcourt, Warri, Dangote, and others would require about 123.4 million barrels in the first half of 2025, or roughly 23.8 million barrels per month.

Despite this, deliveries have lagged behind forecasts. Nigeria’s crude and condensate output climbed to 1.63 million barrels per day in August, with the bulk still sold to international buyers. Refinery operators have repeatedly complained of difficulties in sourcing crude locally, claiming that producers prefer dollar-based export deals, leaving domestic refiners exposed to exchange rate volatility.

Eche Idoko, Publicity Secretary of the Crude Oil Refiners Association of Nigeria, argued that Nigeria’s drive for self-sufficiency in fuel refining has been undermined by inconsistent policies and the “willing buyer, willing seller” pricing system. He maintained that local refiners are disadvantaged in competing with foreign buyers who pay in hard currency, despite the legal provisions of the PIA.

Data from earlier in the year showed that 82 per cent of Nigeria’s crude production in the first quarter of 2025 was exported, further highlighting the supply constraints facing local processors. Analysts warn that this imbalance could slow Nigeria’s refining growth and frustrate efforts to cut the country’s fuel import bill.

Although the NUPRC insists its allocation of more than 67 million barrels demonstrates commitment to domestic refining, operators argue that partial supplies cannot sustain efficient operations or justify the heavy capital investments in refinery projects.

Stakeholders are urging stronger enforcement of crude allocation rules, clearer pricing mechanisms, and targeted incentives to balance the interests of producers and refiners, warning that without these measures, Nigeria’s refining ambitions could remain out of reach.