The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently revealed that local refiners rejected 11 million barrels of crude oil offered in April 2025, despite their ongoing complaints about feedstock shortages.
NUPRC Chief Executive Gbenga Komolafe, represented by Boma Atiyegoba, shared this at the Crude Oil Refinery-Owners Association of Nigeria (CORAN) summit in Lagos on October 12, 2025. Komolafe noted that of 48 cargoes available for export, 21 were reserved for domestic refining under the Domestic Crude Supply Obligation (DCSO), but only 10 were taken.
Komolafe attributed the rejection of eight cargoes to pricing disputes and three to unsuitable crude grades, emphasizing that availability is not the issue. “Refiners conduct their own economics and prefer specific blends,” he said, citing the “willing buyer, willing seller” principle in the Petroleum Industry Act (PIA). He stressed that NUPRC avoids interfering in commercial pricing.
Dangote’s 650,000-barrel refinery and modular refinery owners have repeatedly highlighted crude shortages, with Dangote relying on U.S. imports. However, CORAN Vice-Chairman Dolapo Okulaja disputed NUPRC’s stance, arguing that refiners receive insufficient quantities. “A 20,000-barrel refinery getting only 5,000 barrels daily cannot operate efficiently,” she said on October 12, 2025, calling for clearer supply commitments and pipeline infrastructure.
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Anibor Kragha of the African Refiners and Distributors Association urged refiners to process diverse crude blends to boost efficiency, while pushing for higher production to meet OPEC quotas and local needs. CORAN President Momoh Oyarekhua criticized conflicting PIA clauses, noting that the “willing buyer, willing seller” condition undermines the DCSO’s intent to prioritize local refining.
It bears mentioning that the ongoing dispute highlights challenges in implementing the PIA, with infrastructure gaps and pricing issues hindering Nigeria’s push for self-sufficiency in refining.
