Nigeria’s upstream oil regulator announced on Monday that oil producers who fail to meet their required supply quotas to local refineries, including the massive Dangote Refinery, will be denied export permits.
- Oil producers failing to meet supply quotas to local refineries will be denied export permits.
- Domestic crude supply obligation ensures local energy needs are prioritized before oil is shipped abroad.
- Dangote Refinery projected to require the largest share of crude oil for Nigerian refineries in 2025.
Nigeria’s upstream oil regulator announced on Monday that oil producers who fail to meet their required supply quotas to local refineries, including the massive Dangote Refinery, will be denied export permits.
Under the Petroleum Industry Act, oil producers, both domestic and international, must allocate a specific volume of crude for Nigeria’s refineries before they can export, Reuters reported.
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This requirement, known as the domestic crude supply obligation, ensures that local energy needs are prioritized before oil is shipped abroad.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) stated that it recently held a meeting with oil producers and refiners to address the ongoing dispute over the domestic crude supply obligation.
According to a statement from NUPRC chief Gbenga Komolafe, refiners accused producers of failing to meet their required supply quotas, while producers countered that refiners were offering prices too low to be viable, pushing them to seek alternative markets.
Komolafe warned, “the diversion of crude cargo designated for domestic refineries is a contravention of the law and the Commission will henceforth disallow export permits for designated crude cargos for domestic refining.“
For the first half of 2025, Nigerian refineries are projected to require a total of 770,500 barrels of crude oil per day (bpd), with the Dangote Refinery expected to account for the largest share at 550,000 bpd, according to a schedule published by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
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Earlier, Business Insider Africa reported that Nigeria’s petrol imports have reached their lowest level in eight years, as the country’s new mega-refinery reduces reliance on foreign suppliers and strengthens fuel independence.
According to data compiled by Bloomberg from analytics firm Vortexa Ltd., shipments to Nigeria averaged around 110,000 barrels per day between January 1 and 24. The $20.5 billion Dangote refinery, owned by Africa’s richest man, has a processing capacity of 650,000 barrels per day, making it the largest refinery in Africa.
