Photo caption: NUPENG logo
By Charles Okonji
The New National Executive President of Nigeria Union of Petroleum and Natural Gas Workers Comrade Otumba Salmon Oladiti has commended the Federal Government and the Nigerian National Petroleum Company Limited (NNPC Ltd.) over the recent agreement reached with Chinese firms aimed at reviving the Warri and Port Harcourt refineries respectively.
Comrade Oladiti described the development as a significant step towards addressing the long-standing challenges in Nigeria’s petroleum sector and reducing the country’s heavy dependence on imported petroleum products despite its position as a major oil-producing nation.
He noted that the continued collapse and underperformance of local refineries over the years have contributed greatly to rising fuel costs, pressure on foreign exchange, inflation, unemployment, and worsening economic hardship for millions of Nigerians.
He pointed out that Nigerian workers and ordinary citizens have continued to bear the burden of unstable fuel supply, high transportation costs, and harsh living conditions caused by the failure of the nation’s refining sector and the inability to achieve sustainable local production.
The NUPENG President explained that the agreement with the Chinese firms presents an opportunity for the country to reposition its oil and gas sector, restore public confidence in the nation’s refining capacity, create employment opportunities, encourage industrial growth, strengthen energy security, and reduce the economic pressure associated with fuel importation.
“Nigerians are tired of repeated refinery rehabilitation promises and projects that consumed huge public resources without delivering lasting results, therefore urged all parties involved in the partnership should ensure transparency, accountability, professionalism, and timely execution of the agreement.
“The revival of the Warri and Port Harcourt refineries must not end as another political announcement, but should translate into real economic relief and tangible benefits for Nigerians already battling difficult economic realities.” Comrade Oladiti averred.
He urged the Federal Government and NNPC Ltd. to remain committed to policies and partnerships that prioritize national development, economic stability, and the welfare of the Nigerian people.
NUPRC releases DCSO report for Q1 2026
The Nigerian Upstream Petroleum Regulatory Commission has released the statistics on the enforcement of the Domestic Crude Supply Obligation (DCSO) in accordance with the provisions of the Petroleum Industry Act.
A summary of the monthly allocation shows that 61.9 million barrels of crude oil were allocated to domestic refineries during the quarter, while producers collectively offered a higher volume of 68.7 million barrels.
However, actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of 36-46 per cent as of the end of the first quarter (Q1) 2026.
According to a statement by the Head, Media and Corporate Communication, Eniola Akinkuotu, a breakdown of the DCSO month by month reveals that in the month of January, following consultations with stakeholders, including crude oil producers, the Commission mandated producers to supply 22.6 million barrels to the local refiners.
Producers exceeded expectations, offering 25.3 million barrels, representing a rise of 11.9 per cent, or an additional 2.7 million barrels, in the month. However, 9.2 million barrels were ultimately supplied to local refiners.
In February, the Commission, in discharging its DCSO, allocated 20.5 million barrels to local refineries, but producers offered slightly less at 19.8 million barrels, missing the target by 700,000 barrels. Actual supply was down at 9.1 million barrels.
In March, there was a modest improvement in deliveries, which rose to 10.1 million barrels, up from 9.2 million barrels in January and 9.1 million barrels in February. During the same period, DCSO allocations stood at 18.8 million barrels, while producers offered a significantly higher 23.6 million barrels, representing an excess of 4.8 million barrels or 25.5 per cent.
The shortfall between volumes offered and actual deliveries has been attributed primarily to pricing gaps between producers and domestic refiners. The Commission emphasised that the current framework operates on a “willing buyer, willing seller” basis, which continues to shape transaction outcomes.
Despite these developments, the Commission reaffirmed its commitment to achieving the government’s objective of energy sufficiency.
Leveraging the framework of the PIA, 2021, the Commission aims to sustain recent gains in crude oil production while continuously refining the DCSO methodology to enhance transparency, efficiency, ensuring that local refineries are supplied as committed
