Modular Refineries Reject Nigerian Crude Due to Unworkable Terms

Nigeria's modular refinery operators have refused to collect any crude oil under the Domestic Crude Supply Obligation (DCSO) in the second quarter of 2026, citing unworkable commercial terms.

The Crude Oil Refinery Owners Association of Nigeria (CORAN) spokesman Eche Idoko explained that international pricing benchmarks like Brent and WTI make crude too costly for smaller refineries.

CORAN is calling for a domestic crude pricing structure that reflects where delivery actually takes place, instead of using assumptions about freight, insurance, and other delivery costs embedded in these international indices.

The NUPRC's second-quarter implementation report showed that 98% of the 68.1 million barrels offered to domestic refiners during the period went to Dangote Petroleum Refinery.