THE Federal Government says a total of 67,657,559 barrels of crude oil were allocated to local refining companies between January and August 2025, a figure that highlights both progress and persistent challenges in Nigeria’s effort to achieve self-sufficiency in petroleum refining.
News Point Nigeria reports that confirming the figures in Abuja on Sunday, the Head of Media and Strategic Communications at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Eniola Akinkuotu, said the allocation was carried out under the Petroleum Industry Act (PIA) 2021 and the Domestic Crude Supply Obligation (DCSO) framework, which compels oil producers to reserve a portion of their output for domestic use.
“A total of 67,657,559 barrels were delivered to local refiners between January and August this year. All refiners, modular, state-owned, and private, benefited from these allocations,” Akinkuotu said.
He listed beneficiaries to include Waltersmith, Aradel Energy, and state-owned plants under the Nigerian National Petroleum Company Limited (NNPCL).
Despite the delivery of over 67 million barrels, the volume still represents only about 55% of what refiners requested for the period. Local refiners had demanded 123,480,500 barrels for the first half of 2025 to meet their installed processing capacity, leaving a deficit of 55,822,941 barrels.
Earlier this year, the NUPRC projected that plants such as Port Harcourt, Warri, Dangote Refinery, and other modular operators would require about 770,500 barrels per day, translating to 23.8 million barrels monthly.
However, most of Nigeria’s crude continues to be shipped abroad. Government data shows that 82% of total production in Q1 2025 was exported, a reality that critics say undermines Nigeria’s goal of reducing its $10 billion annual fuel import bill.
Operators under the Crude Oil Refiners Association of Nigeria (CORAN) have repeatedly complained that they are being priced out of the market by the dollar-denominated “willing buyer, willing seller” pricing model.
CORAN’s Publicity Secretary, Eche Idoko, in a July statement, warned that this model disadvantages domestic refiners who must source scarce foreign exchange to compete with international buyers.
“The willing buyer, willing seller principle was meant to create competitiveness. But in practice, it disadvantages local refiners who cannot match dollar-based offers from international traders,” Idoko said.
He added that the policy paradoxically makes it easier for foreign buyers to access Nigerian crude than the very local refiners the PIA was designed to support.
“What we are seeing is a clash of economic realities producers prefer dollar inflows, refiners need naira-friendly pricing, and the government is caught in between trying to meet domestic fuel demand while earning foreign exchange,” said Lagos-based energy analyst, Dr. Musa Omale.
The NUPRC insists that its eight-month allocation of over 67 million barrels demonstrates its commitment to ensuring domestic refineries have feedstock.
“We are working to balance the interests of producers and refiners. This is a process, and we expect higher compliance levels going forward,” Akinkuotu said, adding that more aggressive monitoring and enforcement are on the way.