Nigeria's Refiners Struggle with $5.17bn Crude Supply

In the first quarter of 2026, Nigeria's domestic refiners faced significant challenges despite being allocated $5.17 billion worth of crude oil. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported that while 68.7 million barrels of crude were available, local refiners only lifted 28.5 million barrels, resulting in a conversion rate of 36.46%.

This discrepancy underscores persistent structural and commercial bottlenecks in the domestic crude supply chain. Eniola Akinkuotu, head of media and corporate communications at NUPRC, noted that despite producers exceeding supply targets, actual deliveries remain constrained.

The commission mandated that producers supply 22.6 million barrels, with an actual offer of 25.3 million barrels, reflecting an 11.9% increase. However, allocations dropped in February and March, with refiners struggling to meet targets, leading to concerns over feedstock adequacy for Nigeria's refining ambitions.