Domestic crude supply falls amid sabotage allegations

Domestic crude supply to Nigeria’s refineries declined to 15.84 million barrels in May 2026, even as the facilities achieved a combined intake of 17.92 million barrels for the month, according to the latest midstream and downstream statistics released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The NMDPRA fact sheet for May 2026 shows a noticeable drop in locally sourced crude compared to the previous month, when domestic supply stood at 17.96 million barrels in April. Imports remained minimal at 2.08 million barrels in May, meaning domestic crude still accounted for the vast majority of the total volume processed by the country’s refineries.

This development has raised fresh concerns within the industry, coming amid allegations of sabotage in the crude supply chain, with the Dangote Petroleum Refinery pointing to possible deliberate disruptions affecting reliable delivery of local crude to domestic facilities.

Despite the dip in domestic crude availability, Nigerian refineries demonstrated notable resilience. The data indicates that domestic crude continued to dominate supply, representing around 88.4 per cent of total receipts in May.

This reflects ongoing progress in reducing the nation’s historical reliance on imported crude, although the month-on-month decline from April has sparked questions about the consistency of local feedstock delivery.

Across the first five months of the year, domestic supply to refineries had shown a generally upward trend, rising from 8.83 million barrels in January and 8.86 million barrels in February to 11.49 million barrels in March, before peaking in April and moderating in May.

Total crude receipts across all refineries reached their highest point of 20.92 million barrels in March before easing in subsequent months, with imported crude accounting for 9.43 million barrels in March.

The NMDPRA fact sheet further detailed the intake of intermediates and gasoline blendstock at the Dangote Petroleum Refinery, which stood at 240.59 million litres in May. This figure followed higher volumes earlier in the year, including 658.31 million litres in January, 306.89 million litres in February, 102.35 million litres in March and 147.37 million litres in April.

The decline in domestic crude supply comes amid allegations of deliberate sabotage by government agencies, according to the Dangote refinery.

Recall that the Dangote refinery has recently accused the Federal Government and its agencies of alleged deliberate sabotage, undermining its operations and frustrating its investment in Nigeria’s downstream petroleum sector, an allegation the Federal Government denied.

In a recent affidavit filed before the Federal High Court in Lagos seeking an interim injunction to stop the issuance and renewal of petroleum import licences, the company said its operations are anchored on crude oil supply arrangements with the Nigerian National Petroleum Company Limited (NNPC Ltd), which it described as central to its refining business.

The refinery said its business operations include purchasing crude oil from the Federal Government through the NNPC and refining products for sale to Nigerians to ease pressure on the government to make petroleum products available for local consumption.

The refinery, however, alleged that the government had failed in its obligation to ensure adequate crude supply to local refineries, claiming the development was deliberate and harmful to its investment.

“However, contrary to the government’s obligation to ensure the adequate supply of crude oil to local refineries such as that of the applicant, the government, through the NNPC, has deliberately neglected to do so, in a bid to sabotage the applicant’s investment in the oil and gas industry in Nigeria,” the refinery alleged.

According to the company, the shortfall in crude allocation has forced it to consistently source a substantial portion of its crude feedstock through international traders, who charge additional premiums on top of already elevated spot market prices.

The refinery further disclosed that its current allocation from NNPC falls far below operational requirements, saying it currently receives just five crude oil cargoes per month from the NNPC, “which is less than half of the 13 cargoes” required to maintain full supply of petroleum products. The NNPC denied the allegations, saying there was never any plan to sabotage the $20bn investment.

Speaking with our correspondent, the publicity secretary of the Crude Oil Refinery Owners Association of Nigeria, Eche Idoko, said modular refineries did not receive crude from the Federal Government but from private oil producers.

“None of the modular refineries I know have gotten crude under the Federal Government arrangement. But I know that through private arrangements, the Edo refinery is getting it from Ingenti. Aradel is getting crude from EOP and a couple of other fields too. Opac is getting from Pillar,” he said in a chat on Sunday.

The domestic crude supply obligation prioritises the supply of crude to local refineries before export, but refiners have repeatedly complained about the alleged failure of the regulator to implement the DCSO.

However, in a release in May, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed that domestic refiners in Nigeria left an estimated $3.13bn worth of crude oil unlifted in the first quarter of 2026.

It was learnt that while crude producers made significant volumes available under the DCSO, refiners were unable to take delivery of a large portion due to persistent commercial and structural challenges.

Figures released by the commission indicated that while 61.9 million barrels were allocated to domestic refiners during the period, oil producers collectively offered 68.7 million barrels.

However, actual deliveries lagged significantly, with refiners lifting just 28.5 million barrels. The NUPRC attributed the shortfall to pricing disputes, crude grade mismatches and the “willing buyer, willing seller” framework, which leaves transactions subject to commercial negotiations rather than strict enforcement.

Meanwhile, the Dangote refinery, which has become the dominant force in Nigeria’s refining sector, continued to deliver strong results amid these supply dynamics. The facility recorded an average capacity utilisation of 101.25 per cent in May, operating above its nameplate capacity.

According to the NMDPRA report, the refinery produced an average of 44.7 million litres per day of Premium Motor Spirit (petrol), 24.5 million litres per day of diesel and 21.9 million litres per day of aviation fuel during the month. It maintained a robust contribution to the domestic market by supplying 41.5 million litres per day of petrol, 18.2 million litres per day of diesel and 2.8 million litres per day of aviation fuel locally.

The refinery also exported significant volumes, particularly 17.5 million litres per day of jet fuel, showcasing Nigeria’s gradual transition towards becoming a net exporter of refined petroleum products.

Closing stock levels as of 31 May 2026 stood at 9.4 million litres for petrol, 6.2 million litres for diesel and 7.3 million litres for aviation fuel.