Nigerian refiners struggle as most crude is exported
Local oil refiners in Nigeria are facing ongoing crude shortages, despite the country’s significant oil production levels. According to the Central Bank of Nigeria, Nigeria exported approximately 306 million barrels of crude oil between January and October 2025, leaving domestic refineries with limited feedstock. Major refineries, including the Dangote Petroleum Refinery, have had to source crude from other countries due to insufficient local supply. Industry leaders like Eche Idoko and Aliko Dangote have highlighted the persistent challenges caused by export prioritisation and market policies.
TLDR
- Nigeria exported about 306 million barrels of crude oil between January and October 2025, nearly 69% of total production.
- Local refineries, including Dangote and OPAC, have struggled to secure enough crude, sometimes operating at just 10% of capacity or shutting down for months.
- The Domestic Crude Supply Obligation policy is meant to prioritise local refining, but implementation has been hampered by the ‘willing buyer, willing seller’ system.
- Upstream producers often prefer selling to international buyers due to more lucrative, dollar-denominated payments.
- The Nigerian Upstream Petroleum Regulatory Commission warned that export permits could be withheld from companies failing to meet domestic supply obligations.
