- Nigeria’s crude exports reached 82% in Q1 2025 despite rising local demand.
- Refiners received 45% less crude than required to meet domestic refining needs.
Nigeria’s crude exports remain high despite rising production and growing domestic demand. Recent data revealed that 82 per cent of output in the first quarter of 2025 was shipped abroad. This comes even though local refiners struggle to secure enough crude to meet their needs.
Figures from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that indigenous refiners received 67.65 million barrels between January and August. However, this fell well short of the 123.48 million barrels requested to cover operations. As a result, supply to local processors was about 45 per cent lower than required.
According to NUPRC’s Head of Media and Strategic Communications, Eniola Akinkuotu, allocations were made under the Petroleum Industry Act 2021 and the Domestic Crude Supply Obligation (DCSO). The policy requires producers to allocate crude to local refiners before exporting. Yet, despite this obligation, most of Nigeria’s production continues to leave the country.
Crude output has risen, reaching 1.63 million barrels per day in August. Nevertheless, refiners argue they remain disadvantaged. The Crude Oil Refiners Association of Nigeria (CORAN) has repeatedly raised concerns. It insists that local operators face difficulties sourcing crude because international buyers pay in dollars.
CORAN’s Publicity Secretary, Eche Idoko, described the situation as a policy contradiction. He explained that the “willing buyer, willing seller” pricing model makes it hard for domestic refiners to compete. Consequently, Nigeria’s drive towards refining self-sufficiency is undermined.
Industry analysts warn that unless crude allocation improves, Nigeria’s crude exports will continue undermining local capacity. They argue that the policy gap threatens the nation’s ambition for energy independence. Stronger enforcement of the DCSO remains essential if domestic refiners are to thrive.