Nigeria’s oil and gas sector is witnessing a major rebound, with the country’s rig count soaring by 762.5% from just eight in 2021 to 69 in 2025, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In a statement by its Head of Media and Strategic Communication, Eniola Akinkuotu, the NUPRC said the surge underscores renewed investor confidence and reflects the success of reforms since the commission’s establishment four years ago.
Akinkuotu noted that despite challenges inherited from the pre-Petroleum Industry Act (PIA) era, the commission exceeded its revenue targets, attracted $39.98 billion in investments, and boosted both rig count and crude oil output.
“The latest rig count of 69 comprises 40 active rigs, eight on standby, five on warm stack, four on cold stack, and 12 on the move,” he said. “The success aligns with President Bola Tinubu’s charge that Nigeria is ready for business and that the right investment climate prevails in the upstream sector as actioned daily by the NUPRC.”
He added that in 2024, the NUPRC approved multi-billion-dollar divestments, including those from Nigeria Agip Oil Company to Oando Energy Resources, Equinor to Chappal Energies, Mobil Producing Nigeria Unlimited to Seplat Energies, and Shell Development Company Nigeria Limited to Renaissance Africa Energy, moves aimed at helping investors refocus on deep offshore assets.
Akinkuotu said that to give full effect to the PIA 2021, the commission, in consultation with industry stakeholders, developed 24 forward-thinking regulations, 19 of which have been gazetted.
Between 2022 and 2024, the NUPRC surpassed its revenue targets by 18.3%, 14.65%, and 84.2%, respectively — despite fluctuations in global oil prices. The commission also approved 79 Field Development Plans (FDPs) with a potential investment value of $39.98 billion, leading to an average daily production of 1.65 million barrels per day.
“Production is expected to rise further under the ‘Project One Million Barrels per Day’ initiative, which aims to reach 2.5 million barrels per day by 2027,” Akinkuotu said.
He explained that before the NUPRC’s establishment, licensing rounds were opaque and politically influenced. However, the process has now been digitised for greater transparency.
The commission has also introduced the ‘Drill or Drop’ policy, ensuring unexplored acreages are relinquished to encourage optimal resource use. Akinkuotu said the policy has already identified 400 dormant oil fields, pushing complacent operators to take swift action.
On gas flare reduction, he said the NUPRC has completed awards under the Nigerian Gas Flare Commercialisation Programme (NGFCP), expected to attract $2.5 billion in new investments.
He also revealed that Host Community Development Trusts have remitted ₦122.34 billion and $168.91 million, totaling over ₦358.67 billion based on the prevailing exchange rate. The funds are currently financing 536 community projects, including schools, hospitals, and roads, helping to curb oil theft and promote development.
To drive further growth, Akinkuotu said the commission has overseen 306 development wells drilled since 2022 and issued Nigeria’s first Petroleum Exploration Licence (PEL) for a massive offshore geophysical survey covering 56,000 km² of 3D seismic and gravity data.
He added that crude oil losses have dropped by 90%, from 102,900 barrels per day in 2021 to 9,600 barrels per day, due to combined efforts by security forces, private contractors such as Tantita Security Services, and the NUPRC.
The NUPRC’s milestones, Akinkuotu said, reflect a new era of transparency, innovation, and investor confidence in Nigeria’s oil and gas industry.
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