The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced a remarkable surge in the nation’s rig count, which has climbed from just eight in 2021 to 69 rigs in 2025.
The development, according to the NUPRC’s Head of Media and Strategic Communication, Eniola Akinkuotu, reflects renewed investor confidence and robust activity in Nigeria’s upstream petroleum sector.
Akinkuotu noted that despite inheriting major challenges from the pre-Petroleum Industry Act (PIA) era, the commission has exceeded revenue targets, attracted $39.98 billion in new investments, and boosted both rig count and crude 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 on the move — representing a 762.5% increase in under four years,” he said.
“This aligns with President Bola Tinubu’s charge that Nigeria is ready for business and offers the right investment climate for the upstream sector.”
Major investments and divestments
In 2024, NUPRC approved multi-billion-dollar divestments involving:
- Nigeria Agip Oil Company to Oando Energy Resources
- Equinor to Chappal Energies
- Mobil Producing Nigeria Unlimited to Seplat Energies
- Shell Petroleum Development Company to Renaissance Africa Energy
According to Akinkuotu, the divestments reflect investors’ efforts to restructure portfolios and focus on deep offshore developments.
Regulatory and financial milestones
To implement the PIA (2021), the commission has developed 24 forward-looking regulations, 19 of which have been gazetted.
NUPRC also surpassed its revenue targets by 18.3% (2022), 14.65% (2023), and 84.2% (2024) despite oil price fluctuations.
Between 2024 and 2025, it approved 79 Field Development Plans (FDPs) — with a potential investment value of $39.98 billion.
Current crude oil production averages 1.65 million barrels per day (bpd) and is projected to hit 2.5 million bpd by 2027 under the Project One Million Barrels per Day Initiative.
Transparency and accountability
Akinkuotu noted that before NUPRC’s establishment, licensing rounds were opaque and politically influenced.
“With full digitalisation, transparency and credibility have been restored,” he said.
“The commission is enforcing the ‘Drill or Drop’ policy to ensure optimal asset utilisation and prevent dormant fields from locking up reserves.”
The policy has identified 400 inactive oil fields, prompting renewed activity among operators.
Gas flare commercialisation and host communities
Under the Nigerian Gas Flare Commercialisation Programme (NGFCP), the NUPRC has completed flare site awards worth an estimated $2.5 billion in investments aimed at eliminating gas flaring.
Host Community Development Trusts have also remitted ₦122.34 billion and $168.91 million, totaling over ₦358.67 billion at the prevailing exchange rate. These funds are supporting 536 community projects, including schools, health centres, roads, and vocational hubs — efforts that have also curbed crude oil theft.
Operational achievements
Since 2022, NUPRC has recorded:
- 306 development wells drilled and completed
- Nigeria’s first Petroleum Exploration Licence (PEL) covering a 56,000 km² offshore geophysical survey of 3D seismic and gravity data
- A 90% reduction in crude oil theft — from 102,900 bpd in 2021 to 9,600 bpd in 2025, achieved through collaboration with security forces and private contractors such as TANTITA.
Regional leadership
The Gbenga Komolafe-led NUPRC has also spearheaded the creation of the African Petroleum Regulators Forum (AFRIPERF), promoting cross-border cooperation and strengthening Africa’s collective voice in global hydrocarbon advocacy.
