In a sweeping announcement highlighting the rapid transformation of Nigeria’s upstream oil and gas sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revealed that the country’s rig count has surged by over 762% rising from just eight rigs in 2021 to 69 rigs as of October 2, 2025.
The Commission disclosed the figures in a statement on Sunday as part of a comprehensive breakdown of its achievements since its establishment under the Petroleum Industry Act (PIA), 2021.
According to the data released, the current figure includes:
- 40 active rigs
- 8 on standby
- 5 on warm stack
- 4 on cold stack
- 12 in transit
This exponential increase in rig activity reflects a renewed investor confidence in Nigeria’s upstream operations, said the Commission, adding that the growth aligns with President Bola Tinubu’s charge that “Nigeria is open for energy business.”
“These numbers are not just statistics,” the Commission stated. “They are indicators of policy impact, regulatory clarity, and investor trust.”
The rig count spike is just one of several milestones the Commission claims to have achieved over the past four years, despite what it called “legacy challenges” inherited from the pre-PIA era. Other notable achievements include:
Revenue Performance
- The NUPRC exceeded its annual revenue targets by:
- 18.3% in 2022
- 14.65% in 2023
- 84.2% in 2024, despite global oil market volatility.
Investment Inflow
- Between 2024 and 2025 (YTD), the Commission approved 79 Field Development Plans (FDPs), unlocking a potential $39.98 billion in investments.
Oil Production Growth
- Nigeria’s daily average crude oil output currently stands at 1.65 million barrels per day (Mbopd), with expectations to hit 2.5Mbopd by 2027 under the Project 1Mbopd initiative.
Reform-Driven Policies Power Sector Revival
Transparent Licensing
- Bid rounds that were once shrouded in secrecy have now been digitised and streamlined, a move praised by transparency watchdog NEITI as setting a new standard in upstream licensing.
Drill or Drop Initiative
- The Commission is enforcing the “Drill or Drop” policy, requiring inactive oil acreages to be relinquished. So far, 400 dormant fields have been identified, forcing holders to take development action or lose them.
Oil Major Divestments
- In 2024, NUPRC approved major divestments including:
- NAOC to Oando
- Equinor to Chappal Energies
- Mobil to Seplat
- Shell to Renaissance Africa Energy
These transactions signal a strategic portfolio shift toward deep offshore developments by legacy oil majors.
Gas, Data, and Community Impact
Ending Gas Flaring
- Under the Nigerian Gas Flare Commercialisation Programme (NGFCP), flare sites have been awarded to investors, aiming to attract $2.5 billion in capital and curb harmful emissions.
New Seismic Data
- The Commission has also advanced exploration by issuing Nigeria’s first Petroleum Exploration Licence (PEL) for a 56,000km² offshore survey and reprocessing thousands of kilometres in 2D and 3D seismic data.
Host Community Trust Fund
- Over ₦358.67 billion has been remitted into the Host Community Development Trusts since the PIA was enacted, enabling 536 community projects, including roads, schools, hospitals, and vocational centers.
Fighting Oil Theft, Boosting Accountability
- Daily crude oil losses have plummeted by 90%, from 102,900 barrels per day in 2021 to 9,600 barrels per day in September 2025, thanks to a coordinated effort involving security agencies and private contractors like TANTITA.
- New regulations including the Upstream Measurement Regulation and Advanced Cargo Declaration Regulation have enhanced transparency in hydrocarbon accounting.
Beyond Nigeria’s borders, the NUPRC is extending its regulatory influence across Africa through the African Petroleum Regulators Forum (AFRIPERF). The most recent meeting, held during the Africa Oil Week, brought together representatives from 16 African nations, signalling a push toward unified regional standards.
“We are not just regulating Nigeria’s oil sector,” said NUPRC CEO Engr. Gbenga Komolafe. “We are shaping Africa’s upstream future.”
Recognition & Awards
- 2024 SERVICOM Overall Best Performing Parastatal
- 2025 Best Regulator (by Nigerian Energy Correspondents)
- Over 60 awards from various national and international bodies.
The NUPRC says its performance demonstrates a strong shift toward regulatory effectiveness, investment attractiveness, and sustainable development. With billions in new investments, a booming rig count, and measurable reductions in oil theft, Nigeria’s upstream sector appears to be on a path of renewed growth.
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