Domestic refineries cannot secure reliable crude oil supply at competitive prices from local producers

Nigerian refineries are allocated crude but receive less than 50% of their quota because domestic producers prioritize exports over domestic supply due to unfavorable pricing and weak contractual terms. Refineries face production shutdowns and operational losses while crude sits available in-country, forcing them to source internationally at higher costs and longer lead times. Current supply contracts lack enforcement mechanisms and pricing structures that incentivize local producers to fulfill domestic obligations.