Nigeria’s Upstream Petroleum Sector Achieves Remarkable Growth
Nigeria’s upstream petroleum regulator has made significant strides in the oil and gas sector, reporting a 762 per cent increase in rig count alongside billions of dollars in new investments and major reforms four years after its establishment. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been instrumental in restoring investor confidence, curbing crude theft, and positioning Nigeria for long-term energy growth.
The NUPRC, in a statement signed by its Head of Media and Strategic Communication, Eniola Akinkuotu, highlighted the achievements since the passage of the Petroleum Industry Act (PIA). These accomplishments have not only restored trust but also marked a turning point for the industry.
Rig Count Surges Dramatically
One of the most notable achievements is the surge in active rig count. From eight rigs in 2021, the number jumped to 69 as of October 2025. This includes 40 active rigs, 8 on standby, 5 on warm stack, 4 on cold stack, and 12 on the move. The Commission noted that this represents a 762.5 per cent increase in just four years and expects further growth in the coming months.
This surge is a clear indicator of renewed investor interest in Nigeria’s oil and gas industry. The success aligns with President Tinubu’s vision that Nigeria is ready for business, with the right investment climate prevailing in the upstream sector.
Revenue Exceeds Targets
The NUPRC has consistently outperformed government revenue targets. In 2022, 2023, and 2024, the Commission exceeded its collection benchmarks by 18.3 per cent, 14.65 per cent, and 84.2 per cent respectively. Between 2024 and 2025, 79 Field Development Plans (FDPs) valued at $39.98bn were approved, unlocking fresh capital inflows and exploration projects.
Crude Oil Production Gains
Crude oil production has also seen substantial gains, averaging 1.65 million barrels per day. The “Project 1mbopd” initiative aims to lift production to 2.5 million barrels daily by 2027, showcasing the Commission’s commitment to long-term growth.
Digital Licensing and Transparency
The NUPRC has implemented digitalised licensing rounds, which have restored credibility to oil block bid processes. Transparency levels are unprecedented and certified by the Nigeria Extractive Industries Transparency Initiative. This transformation has enhanced credibility and attracted serious exploration and development activity.
Key Achievements
Some of the high-impact achievements include:
- Investment of $39.98bn from FDPs: Between 2024 and 2025, the Commission approved 79 Field Development Plans, comprising $20.55bn in 2024 and $19.43bn in YTD 2025.
- Drill or Drop Policy: Implemented to force idle operators to act on 400 dormant fields, ensuring optimal use of oil assets.
- Billion-Dollar Divestments: Approval of divestments involving multinationals such as Shell, Mobil, and Equinor.
- Forward-Looking Regulations: Rollout of 24 regulations to drive investment and transparency.
Host Community Development Trusts
Host Community Development Trusts have remitted over N358.67bn, funding more than 536 projects in schools, roads, and healthcare across oil-producing communities. Over 536 ongoing community projects are being funded by the trust fund, significantly curbing crude oil theft.
Reduction in Crude Theft
Crude oil theft, a longstanding threat, has dropped by 90 per cent, from 102,900 barrels per day in 2021 to 9,600 barrels per day in September 2025. This reduction is attributed to joint military-security operations and enforcement of new hydrocarbon measurement regulations.
Gas Flare Commercialisation Programme
The NUPRC successfully awarded flare sites under the Nigerian Gas Flare Commercialisation Programme, targeting $2.5bn in fresh investments to eliminate flaring and promote energy transition.
African Petroleum Regulators Forum
Beyond Nigeria’s borders, the NUPRC championed the creation of the African Petroleum Regulators Forum, uniting 16 African countries to harmonise policies and strengthen the continent’s voice in global energy governance.
Challenges and Future Outlook
While the NUPRC’s scorecard demonstrates the impact of the PIA in restructuring Nigeria’s oil and gas sector, challenges remain around meeting ambitious production targets and sustaining investment flows. However, the leadership of Engr Gbenga Komolafe has provided a mechanism to harmonise policies and present a strong voice for Africa in hydrocarbon advocacy globally.
