Nigeria’s upstream petroleum regulator has reported mixed compliance levels in the Domestic Crude Supply Obligation (DCSO) framework during the second quarter, with producers offering volumes well above regulatory allocations but actual deliveries to refineries fluctuating significantly month to month.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it engages crude oil producers and local licensed refineries monthly to allocate specific volumes of crude and condensate for domestic refining. However, the commission emphasized that the framework operates on a “willing buyer, willing seller” basis under the Petroleum Industry Act (PIA) 2021, which ultimately shapes transaction outcomes.
In April, the commission allocated 18,127,638 barrels to producers. Producers offered 19,312,476 barrels to refiners, and actual supply reached 20,879,381 barrels, representing 114.9 percent of the allocated volume.
May saw a sharp reversal. The commission allocated 18,778,392 barrels, while producers offered 23,187,893 barrels to local refiners. Actual supply by month-end stood at 14,228,865 barrels, reflecting 75.8 percent compliance.
June allocations totaled 18,172,638 barrels. Producers offered 26,835,119 barrels, and refiners lifted 18,606,026 barrels, achieving 102.4 percent performance against the allocation.
The data highlights the dominant position of Dangote Refinery in the domestic offtake landscape. The facility required 63 million barrels in the quarter and was offered 68.1 million barrels, accounting for 98 percent of all volumes offered to local refiners. The refinery accepted 52.6 million barrels, taking 78 percent of what was offered.
“The Commission reaffirms its commitment to achieving the government’s objective of energy sufficiency,” the regulator stated. “Leveraging the framework of the PIA, 2021, the Commission aims to sustain recent gains in crude oil production while continuously enforcing the DCSO.”
The quarterly performance underscores both the availability of crude for domestic refining and the commercial dynamics that determine final delivery volumes under the current regulatory regime.
