Nigeria’s upstream oil and gas sector is experiencing a resurgence, with the country’s rig count rising by 48 percent, from 31 in January 2025 to 46 as of July, a development industry regulators attribute to renewed investor confidence, regulatory reforms, and executive directives aimed at boosting production.
This significant uptick in activity signals a vibrant petroleum industry and underscores Nigeria’s ambitions to scale crude oil production by an additional one million barrels per day (mbpd) by October 2026.
Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), disclosed the figures during a two-day media workshop held in Abuja on Wednesday.
According to him, the increase in rig activity reflects Nigeria’s progress in harnessing its hydrocarbon potential, a goal being vigorously pursued through the Commission’s ‘Project One Million Barrels’ initiative.
“We took off at a time that production was declining from one million barrels,” Komolafe said.
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“Today, we are not where we want to be, but we are certainly not where we were. We are now oscillating around 1.7 million barrels per day. That’s a positive delta of over 300,000 barrels per day since the launch of the initiative in October 2024.”
The spike in rig counts, a key metric for measuring operational activity in the upstream oil sector, is being heralded as a key outcome of the strategic push led by the Commission. Komolafe emphasised that the 46 active rigs represent a ‘leap jump, very geometric,’ and signpost an industry gradually regaining momentum.
“You all know that rig count is a very critical indicator of performance in the industry. It reveals the level of vibrancy, the activities ongoing. I’m proud to say that the current count of 46 rigs is not just a statistic; they are signals of rising investor activity and regulatory progress,” he said.
The rig count increase is seen as a direct result of President Bola Tinubu’s executive order in 2023, which charged the NUPRC with reinvigorating upstream oil activities and eliminating bureaucratic bottlenecks. The Commission has since rolled out multiple reforms in line with its mandate under the Petroleum Industry Act (PIA) 2021, which emphasises efficiency, transparency, and investment attraction.
One of the key strategies, according to Komolafe, was the consolidation of previously fragmented efforts in the upstream space. “Before now, operators acted in silos. As the regulator, we had to do all that was necessary to bring them together and charge them to increase national production. The results are beginning to show,” he said.
The Commission’s Project One Million Barrels initiative is central to this resurgence. Launched in October 2024, the project is already delivering tangible results. From a low base of one million barrels per day, Nigeria’s crude output is steadily climbing, with about 300,000 barrels of incremental daily production already realised.
Also speaking at the workshop, Ala Opuene, senior manager of Wells and Drilling Services at NUPRC, highlighted the technical and financial muscle behind the rig resurgence. He revealed that over $8 billion has been invested in drilling operations since 2022, leading to the successful execution of approximately 236 wellbores.
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“These rigs are doing much more than rock crushing,” Opuene noted. “They are central to unlocking Nigeria’s estimated 4.7 billion barrels of oil and 29.26 trillion cubic feet of gas in place, through the 120 Field Development Plans (FDPs) approved between 2022 and today.”
Opuene stressed that it’s not just about quantity, but quality and strategic deployment. “Availability alone is not enough. What matters is deploying fit-for-purpose units that are technically suited to the terrains and formations where drilling is taking place,” he said.
Of the 46 rigs accounted for, 43 are actively involved in ongoing drilling operations. Seven are ‘warm stacked,’ maintained in a ready-to-operate condition, while four are ‘cold stacked,’ temporarily decommissioned due to lower utilisation or awaiting redeployment. Additionally, four rigs are in transition to new well sites, he added.
Industry analysts say the steady rise in rig count is a sign that Nigeria’s upstream sector is turning the corner after years of underinvestment, insecurity, and regulatory uncertainty. With the global oil market facing new production challenges and supply disruptions, Nigeria’s push to ramp up output could not be timelier.
However, experts caution that sustaining the momentum will require continuous regulatory efficiency, improved security in the Niger Delta, and faster contract approvals. They also stress the importance of incentivising indigenous operators and improving access to financing for smaller producers.
