started · updated
Nigeria oil production falls 4% in July amid refinery supply disputes
Nigeria's oil and petroleum sector is experiencing significant shifts in production and supply dynamics. In July 2026, crude oil production fell by 4% month-on-month to an average of 1.505 million barrels per day, though the country continued to exceed its OPEC quota for the third consecutive month.
Regarding domestic refining, the Domestic Crude Supply Obligation (DCSO) recorded a 97.4% compliance rate in the second quarter of 2026, with 53.7 million barrels of crude and condensate supplied to local refineries. The Dangote Petroleum Refinery dominated this market, receiving 98% of all local crude offers and accepting 52.6 million barrels.
However, tensions have emerged regarding crude accessibility and pricing. Dangote Refinery has stated that while it is committed to the DCSO, it has faced challenges with the commercial viability of offered crude. The refinery reported that intermediaries can add up to $4 per barrel to acquisition costs and noted that it rejected 15.5 million barrels in Q2 because they were not offered on competitive terms. Similarly, modular refineries, represented by the Crude Oil Refinery Owners Association of Nigeria, reported they did not lift crude under the DCSO due to high costs driven by international pricing indices like Brent and WTI.
Entities
Crude Oil Refinery Owners Association of Nigeria · Dangote Petroleum Refinery · Devakumar Edwin · Nigeria · Nigerian Upstream Petroleum Regulatory Commission · OPEC · Rabiu Umar
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Nigeria exceeded its OPEC production quota for the third consecutive month in July 2026. www.premiumtimesng.com · dmarketforces.com · dailytrust.com
- [● 5 SOURCES] Intermediaries add between $3 and $4 per barrel to crude acquisition costs for Dangote Refinery. thepodiummedia.com · trekafrica.net · www.energyfocusreport.com · www.thegallantnews.com.ng · www.thegeniusmedia.com.ng
- [○ 1 SOURCE] Nigeria's average daily petrol consumption fell to 47.4 million litres in June 2026. dailyreport.ng
- [● 4 SOURCES] Dangote Refinery rejected 15.5 million barrels of crude oil offered by local producers in Q2 2026 due to high costs. trekafrica.net · www.energyfocusreport.com · www.thegallantnews.com.ng · www.thegeniusmedia.com.ng
- [● 3 SOURCES] Nigeria's crude oil production declined by 4% in July compared to June 2026. www.premiumtimesng.com · dmarketforces.com · dailytrust.com
- [● 2 SOURCES] The Domestic Crude Supply Obligation (DCSO) achieved a 97.4% compliance rate in Q2 2026. www.nationalaccordnewspaper.com · tribuneonlineng.com
- [● 3 SOURCES] Nigeria's average daily crude oil production was 1.505 million barrels in July 2026. www.premiumtimesng.com · dmarketforces.com · dailytrust.com
- [○ 1 SOURCE] Modular refineries did not lift crude under the DCSO in Q2 2026, citing unrealistic commercial terms. punchng.com