The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says Nigeria plans to allocate all its crude oil production to domestic refineries as local refining capacity expands.
According to a report by S&P Global, Nigeria produced about 1.74 million barrels of crude oil per day in June 2026 and is targeting production of three million barrels per day by 2030.
The report noted that Nigeria has historically exported most of its crude oil to refiners in Europe and Asia but is increasingly shifting its focus towards domestic refining to strengthen energy security, reduce dependence on imported petroleum products and boost national revenue.
The NMDPRA said Nigeria’s current domestic refining capacity stands at approximately 1.12 million barrels per day.
The authority also disclosed that it is working with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce provisions of the Petroleum Industry Act (PIA) requiring crude oil producers to supply the domestic market.
NMDPRA Chief Executive Officer, Rabiu Umar, said the Dangote Refinery is playing a major role in expanding Nigeria’s refining capacity, particularly with its plan to double its processing capacity to 1.4 million barrels per day.
Umar said the regulator was working to address crude supply challenges faced by local refineries and ensure compliance with the Domestic Crude Supply Obligation (DCSO) provided for under the PIA.
“The Federal Government wishes to end the pattern where much of the country’s crude volumes are exported and refined products imported,” Umar said.
He added that the government was engaging the NUPRC to ensure that the entire three million barrels per day of crude production targeted in the coming years would be refined locally.
Data published by the NUPRC on August 10, 2026, showed that 53.7 million barrels of Nigerian crude were supplied to domestic refineries in the second quarter of 2026.
Of that volume, 52.6 million barrels were supplied to the Dangote Refinery.
The NUPRC said the Dangote Refinery had been offered 68.1 million barrels during the quarter, a volume that would have fully met its crude requirements.
The Dangote Refinery, which reportedly supplies up to 90 per cent of Nigeria’s refined petroleum products, has previously raised concerns over the availability of adequate and reliable crude supplies.
The refinery has consequently turned to international sources to supplement domestic crude supplies as it seeks to sustain operations and expand production.
S&P Global reported that the Nigerian National Petroleum Company Limited (NNPCL) was initially expected to supply most of the refinery’s crude requirements but faced limitations following forward-selling arrangements after the refinery commenced operations in 2024.
Under the Petroleum Industry Act, which came into effect in 2021, the NUPRC has the authority to impose Domestic Crude Supply Obligations on upstream operators and licensees, requiring a specified portion of their crude oil and condensate production to be supplied to the domestic market.
A spokesperson for the NUPRC confirmed that discussions were ongoing with relevant government agencies on enforcing the provision.
“We have been holding meetings involving the NMDPRA, Ministry of Finance, and crude suppliers on the enforcement of this provision of the law,” the spokesperson said.
In May, the NUPRC disclosed that upstream producers had offered 68.7 million barrels of crude oil to domestic refiners in the first quarter of 2026 but ultimately supplied less than half of the volume.
The commission attributed the shortfall between crude volumes offered and actual deliveries largely to differences over pricing between producers and domestic refiners.
The Federal Government’s push to channel more crude oil to local refineries is expected to become increasingly important as Nigeria expands its refining capacity and seeks to reduce its reliance on imported petroleum products.
