Nigeria’s rig count hits 69 as upstream sector rebounds — NUPRC

Nigeria’s upstream oil and gas industry is showing strong signs of recovery and renewed investor interest, as the country’s rig count has surged from just eight in 2021 to 69 in 2025.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced this milestone as part of its progress report since its establishment.

In a statement issued by the Head of Media and Strategic Communication, Eniola Akinkuotu, the commission highlighted key achievements over the past four years. Akinkuotu described the spike in rig activity as a “clear testament to the renewed vigour and investor confidence” in Nigeria’s upstream oil sector.

Despite facing legacy issues from the era before the Petroleum Industry Act (PIA) of 2021, Akinkuotu noted the NUPRC had exceeded its revenue targets, attracted nearly $40 billion in new investments, and significantly boosted oil production.

“The latest rig count of 69 comprises 40 active rigs, eight on standby, five on warm stack, four on cold stack, and 12 currently being mobilised,” Akinkuotu said. “This represents a 762.5% increase in just under four years.”

He added that this success reflects President Bola Tinubu’s directive that Nigeria is open for business and offers a conducive climate for energy investments, a message the NUPRC has actively pursued.

The commission also gave the green light to several major divestments in 2024, including Nigeria Agip Oil Company’s transfer to Oando Energy Resources, Equinor’s exit to Chappal Energies, and deals involving Mobil Producing Nigeria and Shell handing assets to Seplat Energies and Renaissance Africa Energy, respectively. These moves, Akinkuotu said, are part of a broader trend of investors refocusing on deep offshore assets.

To support the goals of the PIA, the commission has developed 24 new regulatory frameworks in consultation with industry stakeholders. Of these, 19 have already been gazetted, with the rest undergoing the process.

NUPRC also reported that it had surpassed its revenue targets for three consecutive years — 18.3% in 2022, 14.65% in 2023, and an impressive 84.2% in 2024 — despite global oil market fluctuations.

Between 2024 and 2025, the commission approved 79 Field Development Plans (FDPs), representing a potential $39.98 billion in investments. Daily crude production now averages 1.65 million barrels per day, with expectations to reach 2.5 million barrels per day by 2027, under the ambitious “Project One Million Barrels Per Day” initiative.

Akinkuotu also noted that prior to NUPRC’s formation, oil licensing rounds lacked transparency. “The commission, with the backing of President Tinubu, has transitioned to a fully digital process that ensures transparency and credibility,” he said.

Under its “Drill or Drop” policy, NUPRC has flagged over 400 dormant fields for action or relinquishment to ensure better utilisation of Nigeria’s oil assets.

On the gas front, the commission has awarded several flare sites through the Nigerian Gas Flare Commercialisation Programme (NGFCP), aiming to eliminate flaring and attract up to $2.5 billion in investments.

Furthermore, Host Community Development Trusts have received over ₦122.34 billion in naira contributions and $168.91 million in foreign currency, totaling more than ₦358.67 billion. These funds are currently supporting over 500 infrastructure projects, including schools, hospitals, roads, and skill centres — all aimed at improving local communities and reducing oil theft.

Since 2022, NUPRC has overseen the drilling and completion of 306 development wells and issued Nigeria’s first Petroleum Exploration Licence (PEL) for an expansive offshore geophysical survey covering 56,000 km² of seismic and gravity data.

According to the commission, crude oil theft has seen a dramatic reduction — from 102,900 barrels per day in 2021 to just 9,600 bpd in 2025 — thanks to joint efforts by national security forces, private contractors (such as TANTITA), and regulatory oversight.

Finally, Akinkuotu praised the leadership of NUPRC Chief Executive, Gbenga Komolafe, for spearheading regional collaboration through the establishment of the African Petroleum Regulators Forum (AFRIPERF), aimed at amplifying Africa’s voice in global energy discussions.