Home Business News OIL & GAS Dangote, NUPRC differ over Q2 crude supply

Dangote, NUPRC differ over Q2 crude supply

Key points

  • The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said Dangote Petroleum Refinery rejected about 15.5 million barrels of crude offered to it in Q2 2026.
  • Producers reportedly offered 68.1 million barrels to the refinery, but 52.6 million barrels were accepted.
  • NUPRC said the refinery had required 63 million barrels during the quarter.
  • The regulator put the refinery’s acceptance rate at 78 per cent of the volume offered.
  • Dangote Refinery disputed the claim and asked NUPRC to provide the statistics and details of the crude supplies in question.

Main Story

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Dangote Petroleum Refinery have disagreed over the volume of crude oil supplied to the refinery under the Domestic Crude Supply Obligation (DCSO) framework in the second quarter of 2026.

In its Q2 2026 report on DCSO enforcement, the regulator said producers offered 68.1 million barrels of crude to the Dangote refinery between April and June, but the facility accepted 52.6 million barrels.

According to the commission, the refinery required 63 million barrels during the quarter, meaning that producers offered more crude than the refinery’s stated requirement.

NUPRC said the 52.6 million barrels eventually accepted represented 78 per cent of the total volume offered, implying that about 15.5 million barrels of the crude offered was not accepted by the refinery.

The report forms part of the commission’s assessment of compliance with the DCSO, a framework established under the Petroleum Industry Act (PIA) requiring crude producers to make supplies available to domestic refineries.

However, the regulator noted that the framework operates on a “willing buyer, willing seller” basis, which influences the final volume of crude transacted between producers and refiners.

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

At the heart of the dispute is the difference between the crude volumes NUPRC said were offered to Dangote Refinery and the quantities the refinery actually accepted.

While the regulator’s data indicates that the refinery accepted 52.6 million barrels out of 68.1 million barrels offered, Dangote Refinery has challenged the figures and requested evidence to substantiate the claim.

The disagreement also highlights the complexities surrounding the implementation of the DCSO, particularly under its “willing buyer, willing seller” structure.

For the domestic refining sector, the availability of sufficient crude remains critical to ensuring that large-scale refineries can operate consistently and reduce Nigeria’s dependence on imported refined petroleum products.

What’s Being Said

Nigerian Upstream Petroleum Regulatory Commission

The NUPRC said Dangote Refinery required 63 million barrels in Q2 but producers offered 68.1 million barrels.

“Eventually, 52.6 million barrels were accepted by the Dangote refinery. This implies that the refinery only accepted 78 per cent of what it was offered.”

The commission said the improvement in DCSO performance was linked to increased domestic oil production and long-term crude supply agreements backed by bankable sales and purchase agreements between producers and domestic refiners.

It reaffirmed its commitment to enforcing the DCSO while supporting the Federal Government’s objective of achieving energy sufficiency.

Anthony Chiejina, Dangote spokesman

Chiejina disputed the regulator’s figures and asked NUPRC to provide the underlying statistics for verification.

“Let them show us the statistics, we’ll now compare and check, and then we’ll come back to you.”

He said the refinery needed details of the crude allegedly offered, including the relevant period, before it could reconcile the figures with its own records.

“If they have the statistics, let them send it to us, and the period it was done, then I will come back to you to match it.”

What’s Next

The immediate focus will be on whether NUPRC and Dangote Refinery can reconcile their respective records on crude offers, allocations and actual deliveries during Q2.

The commission is expected to continue its monthly consultations with producers and domestic refiners as it enforces the DCSO framework.

Sustained growth in domestic crude production and the expansion of long-term supply agreements will also remain important to improving crude availability for local refineries.

Bottom Line

NUPRC’s Q2 report indicates that Dangote Refinery accepted 52.6 million barrels out of 68.1 million barrels of crude reportedly offered to it, but the refinery has challenged the figures and requested supporting data. The dispute underscores the importance of transparent crude supply data as Nigeria seeks to strengthen domestic refining capacity and achieve greater energy sufficiency.

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