Nigeria’s Rig Count Surges 762% to 69, Marking NUPRC’s Growth

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported a remarkable increase in Nigeria’s rig count, which rose from just eight in 2021 to 69 as of October 2, 2025. This surge of approximately 762.5 percent highlights significant growth in the country’s oil and gas sector, coinciding with the commission’s fourth anniversary.

The NUPRC shared its achievements during a statement on Sunday, emphasizing that the rise in rig count serves as a key indicator of the industry’s health and potential. A higher rig count typically reflects increased production activity, investor confidence, and a growing demand for oilfield services. Earlier this year, in July, the NUPRC had announced a rig count of 46.

According to NUPRC spokesman Eniola Akinkuotu, the current count includes 40 active rigs, eight on standby, five on warm stack, four on cold stack, and 12 rigs in transit. The commission anticipates further increases in the rig count, which they attribute to renewed investor confidence in Nigeria’s upstream oil sector, aligning with President Bola Tinubu’s vision of a favorable business climate.

As part of its achievements over the last four years, the NUPRC exceeded its revenue targets significantly. The commission reported surpassing its revenue goals by 18.3 percent in 2022, 14.65 percent in 2023, and 84.2 percent in 2024. These figures underscore the NUPRC’s contribution to Nigeria’s economic growth, despite fluctuations in oil production and prices.

Additionally, the NUPRC highlighted a potential investment of $39.98 billion resulting from Field Development Plans (FDPs). Between 2024 and 2025, the commission approved 79 FDPs, including 41 in 2024 and 38 so far in 2025. This investment is expected to contribute significantly to the sector’s revitalization.

Enhanced Production and Regulatory Framework

Current average crude oil production stands at 1.65 million barrels per day (Mbopd), with goals to increase this to 2.5 Mbopd by 2027. The NUPRC aims to enhance productivity further through its Project 1 Mbopd initiative. The commission also noted improvements in transparency with its digital bid rounds, which have been described as the most transparent in Nigeria’s upstream history, eliminating prior political influences that clouded the process.

The NUPRC is committed to implementing the ‘Drill or Drop’ policy, which mandates the relinquishment of unexplored acreages to optimize oil asset usage. Through this initiative, the commission identified 400 dormant oil fields and urged companies to take swift action.

Furthermore, the NUPRC reported significant divestments by international oil companies, including Nigeria Agip Oil Company (NAOC) and Shell Development Company Nigeria Limited. These divestments reflect a strategic shift towards deep-offshore development.

The commission has also developed 24 regulations in consultation with stakeholders to implement the Petroleum Industry Act (PIA) 2021. Of these, 19 have been gazetted, while five await finalization, aimed at fostering an enabling investment climate and ensuring compliance with best practices.

Community Development and Environmental Initiatives

In an effort to attract investment and eliminate gas flaring, the NUPRC has completed awards of flare sites under the Nigerian Gas Flare Commercialisation Programme (NGFCP), projecting to garner at least $2.5 billion in investments. The commission also reported substantial contributions from Host Community Development Trusts (HCDTs), amounting to over N122.34 billion and over $168.91 million as of October 2025. This translates to a combined remittance exceeding N358.67 billion based on current exchange rates, aimed at fostering a conducive environment for host communities.

The NUPRC oversees at least 536 projects across various stages of completion, including schools, health centres, roads, and vocational centres, all funded by the trust fund. These initiatives have played a crucial role in curbing crude oil theft, which has drastically reduced from an average of 102,900 barrels per day in 2021 to 9,600 bpd in September 2025.

The commission has also made strides in hydrocarbon development, with 306 development wells drilled and completed since 2022. It issued Nigeria’s first Petroleum Exploration Licence (PEL) for a large offshore geophysical survey covering 56,000 km2 of 3D seismic and gravity data.

The NUPRC has extended its influence beyond Nigeria, championing the establishment of the African Petroleum Regulators Forum (AFRIPERF), which aims to harmonize policies and facilitate cross-border infrastructure development among African nations.

The recent achievements of the NUPRC illustrate a dynamic and evolving landscape within Nigeria’s oil and gas sector, reflecting increased activity, substantial investments, and a commitment to transparency and community development.