Nigeria’s oil and gas industry is experiencing a strong comeback, with the number of active drilling rigs rising to 69 as of October 2025, up from just eight in 2021, according to new data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The sharp increase, the regulator said, reflects renewed investor confidence in Nigeria’s upstream petroleum sector and signals that government reforms and regulatory transparency are beginning to yield tangible results.
Reforms Driving Investor Confidence
Marking its fourth anniversary, the NUPRC highlighted how its policies have transformed the nation’s upstream environment into one that prioritizes efficiency, accountability, and investment growth.
In a statement by Eniola Akinkuotu, Head of Media and Strategic Communication, the Commission noted that the rise in rig activity aligns with President Bola Tinubu’s call for renewed investor engagement and reflects a more stable operational environment.
“This growth clearly demonstrates renewed investor confidence in Nigeria’s oil and gas industry,” the statement read. “The trend is expected to continue upward as more companies ramp up drilling and exploration activities.”
“Drill or Drop” Policy Enforcing Accountability
One of the Commission’s key initiatives—the ‘Drill or Drop’ policy—has been instrumental in enforcing asset utilization across the sector.
The policy, introduced under the Petroleum Industry Act (PIA) 2021, mandates that companies must either actively explore their licensed acreages or relinquish them.
NUPRC said it has so far identified over 400 dormant oil fields under this framework and pushed companies to take swift action to avoid losing undeveloped assets. This approach, the agency emphasized, ensures optimal use of Nigeria’s hydrocarbon resources and reduces speculation in asset holding.
Billions in Divestments and New Regulations
To consolidate transparency and modernization, the NUPRC has developed 24 regulatory frameworks, with 19 already gazetted and five awaiting final approval.
These rules are designed to improve investor confidence, align Nigeria’s operations with international standards, and remove bureaucratic bottlenecks.
The Commission also oversaw several multi-billion-dollar divestments in 2024, including deals involving Agip, Equinor, Mobil, and Shell, as global oil majors shifted focus toward deepwater projects while local firms expanded onshore operations.
Among them were transactions such as Agip’s sale to Oando Energy Resources, and Shell’s divestment to Renaissance Africa Energy, which the Commission described as part of an ongoing portfolio realignment in the industry.
Tackling Gas Flaring and Boosting Community Development
The regulator also highlighted major progress in reducing gas flaring through the Nigerian Gas Flare Commercialisation Programme (NGFCP), which has attracted up to $2.5 billion in new investments.
NUPRC confirmed that awards for several flare sites have been completed, marking a critical milestone toward environmental sustainability and cleaner energy adoption.
On the community front, the Host Community Development Trusts (HCDTs)—a key PIA initiative—have received over ₦122 billion and $168 million, translating to more than ₦358 billion in total contributions.
These funds are financing over 500 community projects across Nigeria, including schools, hospitals, roads, and vocational centers.
The Commission noted that the initiative has also reduced crude oil theft by 90%, from 102,900 barrels per day in 2021 to just 9,600 barrels per day in September 2025.
It credited this to coordinated efforts between the security agencies, private contractors such as TANTITA, and the Commission’s oversight.
Strengthening Transparency and Safety Oversight
The NUPRC emphasized its commitment to transparency through digital transformation and open licensing rounds.
It described the latest bid round as the most transparent in Nigeria’s history, conducted entirely through digital platforms and free from political interference—a development confirmed by the Nigeria Extractive Industries Transparency Initiative (NEITI).
In addition, the Commission announced that it had revoked the license of the Oritsemeyin Rig after a drilling incident at the UDIBE-2 well raised safety concerns. The decision followed investigations into the “kick” incident that disrupted operations and caused significant downtime.
A New Era for Upstream Growth
With a record 69 active rigs, increasing investments, and new regulatory clarity, Nigeria’s upstream sector appears to be entering a new era of sustained growth.
For the NUPRC, these gains underscore its broader mission—to make Nigeria a top destination for oil and gas investment while promoting accountability, transparency, and environmental responsibility.
