Nigeria’s oil sector faced renewed strain as crude producers delivered far less than expected to domestic refineries in early 2026.
Regulatory data showed allocations under domestic supply rules reached 61.9 million barrels during the first quarter of the year.
Producers offered slightly higher volumes at 68.7 million barrels, signalling apparent readiness to meet domestic refining demand.
Yet actual deliveries fell sharply to 28.5 million barrels, exposing a widening gap between commitments and reality in Nigeria’s oil market.
The delivered volume represented roughly 46 percent of allocations and just over 40 percent of what producers had pledged to supply.
This shortfall reflects persistent friction in pricing negotiations, where buyers and sellers remain locked in a delicate commercial standoff.
The regulator said transactions continue under a “willing buyer, willing seller” model, leaving pricing disputes unresolved and deliveries uneven.
Nigeria’s ambition to boost domestic refining and cut fuel imports now appears clouded by these recurring supply disruptions.
The figures cast a shadow over reforms introduced under the Petroleum Industry Act, designed to improve crude availability for local processing.
Analysts say the supply gap has amplified concerns among refinery operators, particularly those relying heavily on steady domestic crude flows.
The issue has weighed on output at the Dangote refinery, Africa’s largest, where inconsistent supply constrains operational capacity.
As barrels fall short of expectations, Nigeria’s broader goal of capturing more value from its oil wealth faces a stubborn test.
