Nigeria’s upstream oil and gas sector is experiencing a significant rebound as fresh investments totaling $8 billion have pushed the nation’s active oil rig count to 46, the highest in over a decade.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicates that the increased capital inflow is driving renewed exploration and production activities across both onshore and offshore fields.
The surge is credited to favorable policy reforms introduced under the Petroleum Industry Act (PIA), alongside a global uptick in crude demand and the government’s recent push to attract foreign and local investment into the energy sector.
“This reflects growing confidence in Nigeria’s regulatory environment and the commercial viability of our hydrocarbon resources,” said Gbenga Komolafe, NUPRC’s Chief Executive. “It is a positive signal for revenue growth, energy security, and job creation.”
Key investors behind the boost include multinational players like TotalEnergies, Chevron, and ExxonMobil, as well as indigenous firms such as Seplat Energy and Heirs Oil & Gas. Many are initiating new drilling campaigns or ramping up operations in previously dormant fields.
Analysts believe the increased rig activity will bolster Nigeria’s efforts to meet its OPEC production quota, stabilize exports, and improve fiscal earnings at a time when the country is grappling with foreign exchange constraints and rising domestic fuel demand.
“This level of rig activity is not just about oil output,” said Dr. Olufunmilayo Ogunleye, an energy economist at the University of Lagos. “It also has ripple effects on employment, local content growth, and infrastructure development.”
Despite ongoing concerns about global energy transition, Nigeria remains focused on maximizing its oil assets while gradually integrating renewable energy into its national energy mix.
The NUPRC says it expects rig activity to climb further in the second half of 2025 as more projects reach final investment decision (FID) stages and pending field development plans are approved.
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