Nigerian Refineries Increase Domestic Crude Requirements Amid Supply Challenges

Nigerian refineries, including the Dangote Refinery, have increased their domestic crude requirements to 597,700 barrels per day for the second half of 2024. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has struggled to meet demand, citing operational challenges and contractual obligations. The Dangote Refinery has criticized NUPRC for inadequate enforcement, impacting its operations and ambitions.

Nigerian refineries, led by the Dangote Refinery, have upped their domestic crude requirements to 597,700 barrels per day for the latter half of 2024, according to the national oil regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This increase comes despite a tight domestic supply.

The NUPRC reported that it only managed to secure 177,777 bpd from oil producers in the first six months of the year, falling short of refinery demands. The rising crude needs have placed the 650,000-bpd Dangote Refinery at odds with the regulator, leading to accusations of regulatory laxity.

Dangote Refinery has criticized the NUPRC for not enforcing laws requiring oil producers to supply domestic refiners, resulting in higher operational costs and increased crude imports. Meanwhile, the NUPRC attributed the shortfall to operational challenges and prior contractual commitments of oil producers.