Dangote Refinery Accepted 78% Of Crude Offered Under Q2 Domestic Supply Scheme

The Dangote Refinery accepted 52.6 million barrels of crude oil out of 68.1 million barrels offered by producers under Nigeria’s Domestic Crude Supply Obligation (DCSO) framework in the second quarter of 2026, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The refinery’s acceptance represented about 78 per cent of the crude volumes offered to it during the three-month period, despite producers offering 5.1 million barrels more than the 63 million barrels the refinery required for the quarter. 

The figures highlight the gap between crude volumes offered by producers and volumes ultimately taken by domestic refiners under the DCSO framework, which operates on a “willing buyer, willing seller” basis under the Petroleum Industry Act (PIA).

The NUPRC disclosed the figures in its Q2 2026 report on DCSO compliance released on Monday.

NUPRC Records 97.4% DCSO Performance

The upstream regulator said 53.7 million barrels of crude oil and condensate were supplied to local licensed refiners between April and June, representing an overall DCSO performance of 97.4 per cent.

The DCSO is established under Section 109 of the PIA and requires crude oil producers to make specified volumes available to domestic refineries.

The NUPRC said it meets monthly with crude oil producers and local licensed refineries before allocating specific volumes to producers for supply to domestic refiners.

However, the regulator noted that actual transactions are determined by the willing-buyer, willing-seller principle provided for under the petroleum legislation.

In April, producers were allocated 18.13 million barrels but offered 19.31 million barrels to refiners.

Actual supplies reached 20.88 million barrels, equivalent to 114.9 per cent of the allocated volume.

The trend changed in May, when producers were allocated 18.78 million barrels but offered 23.19 million barrels.

Actual supply, however, fell to 14.23 million barrels, representing 75.8 per cent compliance.

In June, producers were allocated 18.17 million barrels and offered 26.84 million barrels, while refiners took 18.61 million barrels, resulting in a 102.4 per cent performance against the allocated volume.

Crude Supply Gap Persists Despite Higher Offers

The monthly figures show that producers offered more crude than their allocated obligations in each of the three months, but actual deliveries did not always match the volumes offered.

Across April, May and June, producers were allocated about 55.08 million barrels but offered roughly 69.34 million barrels, exceeding their aggregate allocations by more than 14 million barrels.

Actual supplies, however, totalled 53.71 million barrels.

This indicates that the principal constraint was not necessarily the volume producers offered, but the volumes ultimately accepted and supplied to domestic refineries.

The NUPRC said the improvement in DCSO performance coincided with increased domestic oil production and the signing of long-term crude supply agreements backed by bankable Sales and Purchase Agreements between producers and domestic refiners.

The development is significant for Nigeria’s refining ambitions, as domestic refineries require reliable crude feedstock to operate at higher utilisation levels and reduce the country’s dependence on imported refined petroleum products.

Dangote Refinery Takes Majority Of Offered Volumes

The Dangote Refinery accounted for the overwhelming majority of crude volumes offered under the DCSO during the quarter.

According to the NUPRC, producers offered 68.1 million barrels to the refinery, representing 98 per cent of all volumes offered to domestic refiners.

The refinery, however, accepted 52.6 million barrels, equivalent to 78 per cent of the crude offered to it.

The difference between the volume offered and the volume accepted means about 15.5 million barrels offered to the refinery were not ultimately taken during the quarter.

The figures underscore the importance of matching crude specifications, commercial terms, refinery requirements and delivery logistics with producers’ supply obligations.

For Nigeria’s emerging domestic refining market, the ability of refineries to secure sufficient and suitable crude remains critical to translating higher domestic crude production into increased local refined-product output.

The regulator said it would continue enforcing the DCSO as part of efforts to achieve the Federal Government’s energy sufficiency objectives.

“The Commission reaffirms its commitment to achieving the government’s objective of energy sufficiency,” the NUPRC said.

It added that it would leverage the PIA to sustain recent gains in crude oil production while continuing to enforce the domestic crude supply framework.

The effectiveness of the DCSO will therefore depend not only on producers meeting their allocated obligations but also on ensuring that crude offered under the framework translates into actual deliveries and refinery intake.