Nigeria’s upstream oil sector has received a significant lift, as crude oil producers invested $8 billion in rig infrastructure over the past three years, according to the Nigerian Upstream Petroleum Regulatory Commission.
The investment, made between 2022 and 2025, has driven a surge in drilling operations, with 236 wellbores drilled to total depth and the national rig count rising to a record 46 as of July 2025.
This marks a substantial increase from just eight rigs in 2021, representing a 475% jump over four years, and a 48% rise since January 2025 alone.
NUPRC Chief Executive Gbenga Komolafe disclosed the figures during a media workshop in Abuja on Wednesday.
He attributed the sharp rise in rig activity to the implementation of the Petroleum Industry Act (PIA) in 2021 and the commission’s strategic efforts to unlock Nigeria’s hydrocarbon potential.
Komolafe said the increased rig count signals investor confidence and robust drilling activity, which are vital to expanding our production base.
He noted that the sector is on track to deliver on the Commission’s target of adding one million barrels per day to national crude output between October 2024 and October 2026.
Rig count is a key barometer of industry activity, reflecting upstream investment levels and anticipated production trends.
The latest data suggest Nigeria is making meaningful strides in revitalizing its oil and gas sector following years of underinvestment and declining output.
Recall that in 2023, President Bola Tinubu mandated the commission to drive growth in the upstream petroleum sector. In 2024, the President signed important Presidential Executive Orders to further open the oil industry and declared, “Nigeria is open for business.”
Komolafe said, “The commission commenced operations just less than four years ago. We took off at a time when the production declined to about one million barrels, but now, we are oscillating around 1.7 million barrels.
“Rig count was also at an abysmal level. And of course you know that rig count is a very key metric for measuring vibrancy and performance in the industry, because it is a key equipment on which you drill the oil and reveals the level of vibrancy, activities in the industry.
“And today, I can say proudly that the last time I checked, because I have my dashboard to evaluate where we are, on a daily basis. The rig count today is 46, and we are not stopping here. The signs are positive. The feedback in the industry has been very encouraging.”
Providing additional context on rig availability, the Senior Manager of Wells and Drilling Services, NUPRC, said the growing number of rigs has expanded job opportunities and stimulated broader economic activity.
He noted that rig count dropped to a historic low of six in May 2020 due to the COVID-19 pandemic and the absence of a comprehensive legal framework.
However, following the enactment of the Petroleum Industry Act (PIA) in 2021, the sector began to recover, with rig numbers steadily increasing to 24 by January 2023.
The Commission recorded a brief dip in rig activity in March 2023, when the count fell to 20. However, the sector quickly rebounded, with the average rig count rising to 31 by September of the same year. This upward trend continued through 2024 and into early 2025, highlighted by a sharp increase between June and August 2024, when the number of active rigs jumped from 29 to 38.
By January 2025, the industry recorded an average of 39 active rigs—representing a 145% increase compared to January 2020—signaling a strong resurgence in exploration and drilling operations across the country.
The presentation read, “Rig activity has grown steadily post-PIA, driven by investor confidence and tighter regulatory oversight. 2023 and 2025 marked key inflection points, probably tied to the ramp-up of Petroleum Prospecting License awardees with licenses expiring in June 2025. Over $8bn has been expended by the rigs to drill and initially complete approximately 236 wellbores to Total Depth since 2022. The rigs are playing key roles in executing the 120 approved Field Development Plans between 2022 and to date to unlock a projected 4.7billion barrels of oil and 29.26 Trillion Cubic Feet of gas in place.
“Rig activity has risen by 28 per cent by Half-year 2025, reflecting strong regulatory support and increased operator confidence. The steady month-on-month rise signals intensified upstream activity across terrains. This growth trajectory highlights the commission’s strategic role in aligning operations with the Project 1MMBPD Incremental initiative
“It may also reflect a strategic push by “marginal” operators to meet the June 2025 regulatory timeline. Overall, it underscores a robust response to the commission’s business enablement posture and optimised rig utilisation.”
