Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that Nigeria recorded a 97.4 per cent compliance rate with the Domestic Crude Supply Obligation (DCSO) during the second quarter of 2026, with a total of 53.7 million barrels of crude oil and condensate supplied to local refineries.
The commission disclosed this in its Q2 2026 DCSO performance report released on Tuesday, saying the figures reflect continued enforcement of Section 109 of the Petroleum Industry Act (PIA), which requires crude oil producers to make agreed volumes available to domestic refiners.
According to the report, the DCSO framework is implemented through monthly engagements between the commission, crude oil producers and licensed local refineries. During the meetings, producers are allocated volumes of crude oil and condensate expected to be offered to domestic refiners.
The commission, however, noted that the arrangement operates on a “willing buyer, willing seller” basis as stipulated by the Petroleum Industry Act, meaning actual supplies ultimately depend on commercial agreements between producers and refiners.
For April, producers were allocated 18.13 million barrels but offered about 19.31 million barrels to local refineries. Actual deliveries reached 20.88 million barrels, translating to a performance of 114.9 per cent.
In May, the commission allocated 18.78 million barrels to producers, who subsequently offered 23.19 million barrels to local refiners. However, actual deliveries stood at 14.23 million barrels, representing a compliance rate of 75.8 per cent.
Performance rebounded in June, with producers receiving an allocation of 18.17 million barrels. They offered 26.84 million barrels, while local refiners lifted 18.61 million barrels, resulting in a compliance level of 102.4 per cent.
The report attributed the improved quarterly performance to increased crude oil production and the execution of long-term crude supply agreements backed by bankable Sales and Purchase Agreements between producers and domestic refiners.
On refinery participation, the commission said Dangote Refinery accounted for the bulk of crude supply during the quarter.
According to the report, the refinery required 63 million barrels of crude oil in the second quarter, while producers offered 68.1 million barrels, representing about 98 per cent of the total crude volumes offered to domestic refiners during the period.
However, the refinery eventually accepted 52.6 million barrels, equivalent to about 78 per cent of the volumes offered.
Reaffirming its commitment to the objectives of the Petroleum Industry Act, the commission said it would continue to strengthen enforcement of the Domestic Crude Supply Obligation while supporting policies aimed at increasing crude oil production and improving Nigeria’s energy security.
The NUPRC added that sustaining compliance with the DCSO framework remains critical to ensuring adequate feedstock for local refineries, reducing dependence on imported petroleum products and advancing the Federal Government’s goal of achieving energy sufficiency.
