The Nigerian Upstream Petroleum Regulatory Commission has revealed that 11 crude oil cargoes offered to domestic refiners in a single month were left untaken, despite repeated complaints by operators about lack of crude allocation for local processing.

The Chief Executive of NUPRC, Gbenga Komolafe, represented by a commission official, Boma Atiyegoba, disclosed this during a panel session at the Crude Oil Refinery-Owners Association of Nigeria summit held in Lagos. He said while refinery operators have consistently raised concerns about feedstock scarcity, commission records show crude was made available under the Domestic Crude Supply Obligation.

The 650,000 barrels-per-day Dangote Refinery has repeatedly lamented inadequate crude supply, with officials disclosing that it increasingly relies on the United States to secure feedstock.

Similarly, owners of modular refineries have cited crude shortages and urged the Federal Government to enforce the domestic crude supply obligation outlined in the Petroleum Industry Act. But Komolafe countered these claims, insisting that the issue was not availability but commercial and technical disagreements.

Using April as a reference, he said, “If you look at our database, in April, we have about 48 cargoes that are available for Nigeria export. Of those 48 cargoes, 21 of them were reserved for DCSO. In the month of April, there were 48 crude cargoes; 21 of the cargoes were for DCSO, which amounts to 21 million barrels of oil. Of the 21 that were offered for DCSO, only 10 of them were taken; 11 of them did not fall through.”

He explained that crude lifting is a market-driven transaction. “That’s why we mention the issue of willing buyer, willing seller. It is a business; you go and discuss your pricing, and the commission has decided not to interfere in the commercial pricing of your business with the operators, because we don’t want to be seen to be fixing the prices… crude oil is an international commodity, so there are a lot of factors and indices that go into the pricing,” he said.

According to him, eight cargoes were declined due to pricing disputes, while three were rejected over crude grade specifications. “Even if the government makes this product available, if they don’t need that particular grade, they will not go to buy it, but that does not mean the government is not making that product available.”

Executive Secretary of the African Refiners and Distributors Association, Anibor Kragha, urged Nigerian refiners to expand their capacity to process multiple crude grades to enhance domestic refining output. He said Nigeria must boost production to meet its OPEC quota while ensuring enough crude is available for both export and domestic refining.

“Our refiners are spoilt in that, they only process one or two blends of crude… ultimately, the goal is for Nigeria to get technical allowables to maximise production. Fight for your OPEC quota, but also try to increase production and refine domestically as much as you can and export as much as you can,” he said.

Vice-Chairman of CORAN, Mrs Dolapo Okulaja, however, rejected the commission’s claims, arguing that refineries are still starved of adequate crude. She demanded clarity on allocation volumes, saying operators could not remain viable under current supply conditions.

“We need clarity as to how much we will be getting in crude oil because there seems to be an imbalance between what we are producing and what we want to give for local refining… I cannot set up a 20,000-barrel refinery, and I’m only getting 10,000 or 5,000 barrels per day. How do I pay back my investors?” she said.

She maintained that despite the legal backing under the PIA, most refiners are still receiving far below their required feedstock. She added that high logistics costs and lack of regional crude blend access further cripple operators.

“We are not spoilt; we are very hard-working… I can only blend what’s in my area; I cannot go and look for other blends because that will cost me money in transporting it to my refinery,” she said, stressing that inadequate infrastructure, especially pipeline networks, remains a major obstacle.

CORAN President, Momoh Oyarekhua, faulted the PIA’s implementation, arguing that the willing buyer, willing seller clause negates the domestic supply obligation. “You cannot have an obligation and also put a condition, which is the willing buyer, willing seller clause,” he said, describing it as a major policy contradiction affecting refinery operations.

This standoff underscores growing tension within Nigeria’s refining sector as the country struggles to balance export earnings with its push for local crude processing and energy security.