By Ayomide Otitoju
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported improved implementation of the Domestic Crude Supply Obligation (DCSO), with the Dangote Refinery accounting for about 98 per cent of crude oil and condensate supplied to domestic refiners in the second quarter of 2026.
The DCSO is enforced by the NUPRC under Section 109 of the Petroleum Industry Act (PIA), which requires oil producers to make crude oil available to domestic refineries.
According to data released by the Commission on Monday, domestic refiners received 53.7 million barrels of crude oil and condensate between April and June.
The NUPRC said the Dangote Refinery required 63 million barrels during the quarter, while producers offered it 68.1 million barrels. The volume represented about 98 per cent of the 69.3 million barrels offered to all domestic refiners during the period.
However, the refinery accepted 52.6 million barrels, representing about 77 per cent of the crude offered to it and 10.4 million barrels below its stated requirement.
The refinery’s intake also accounted for about 98 per cent of the 53.7 million barrels eventually supplied to domestic refiners during the quarter.
The figures showed that producers were allocated 55.1 million barrels between April and June but offered 69.3 million barrels, exceeding their allocation by 14.2 million barrels, or 25.8 per cent.
Actual supplies stood at 53.7 million barrels, leaving about 15.6 million barrels of the volumes offered unutilised. Supplies were also about 1.4 million barrels below the total volume allocated by the NUPRC.
The Commission explained that the DCSO framework is administered through monthly consultations involving crude oil producers and licensed domestic refineries. Producers are subsequently allocated specific volumes of crude oil and condensate to offer to local refiners.
However, transactions operate under the PIA’s “willing buyer, willing seller” principle, meaning that volumes offered by producers do not necessarily translate into equivalent quantities purchased and received by refiners.
Monthly figures showed variations in DCSO performance during the quarter.
In April, producers were allocated 18.13 million barrels but offered 19.31 million barrels to local refiners. Actual supplies reached 20.88 million barrels, representing 114.9 per cent performance against their allocation.
In May, 18.78 million barrels were allocated and 23.19 million barrels offered, while actual supplies stood at 14.23 million barrels. This represented 75.8 per cent performance and a shortfall of about 4.55 million barrels against the month’s allocation.
Performance improved in June, when producers were allocated 18.17 million barrels and offered 26.84 million barrels to refiners. Actual supplies stood at 18.61 million barrels, representing 102.4 per cent performance.
The monthly data showed that producers consistently offered more crude than their allocated volumes, while actual deliveries were influenced by the quantities refiners were willing or able to take under the commercial arrangements.
The NUPRC attributed the improvement in DCSO performance to increased local oil production and the signing of long-term crude supply agreements supported by bankable Sales and Purchase Agreements (SPAs) between producers and domestic refiners.
The Commission said the second-quarter results demonstrated that the DCSO was “actively administered and enforced” and reaffirmed its commitment to sustaining the recent gains.
It added that it would continue to leverage the PIA framework to improve crude oil production while enforcing the DCSO as part of efforts to achieve the Federal Government’s objective of energy sufficiency.
The development is significant to Nigeria’s refining ambitions as the country seeks to reduce its dependence on imported petroleum products by ensuring that domestic refineries have adequate crude feedstock.
