Nigeria’s upstream oil and gas sector is experiencing a remarkable revival, according to the nation’s regulatory authority, which reported a staggering 762% increase in rig activity alongside nearly $40 billion in new project investments, all underpinned by transformative reforms introduced through the Petroleum Industry Act (PIA).
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), through a statement from its Head of Media and Strategic Communication, Eniola Akinkuotu, emphasized that renewed investor trust has been achieved by implementing transparent processes and rigorous enforcement measures.
“Reflecting the revitalized energy within Nigeria’s upstream oil and gas industry, the rig count has surged dramatically from just eight rigs in 2021 to 69 as of October 2, 2025. This figure includes 40 rigs currently active, 8 on standby, 5 in warm stack, 4 in cold stack, and 12 in transit, marking an extraordinary 762.5% growth in under four years,” the Commission announced.
This progress aligns with President Bola Tinubu‘s directive that Nigeria is now open for business, fostering an optimal investment environment in the upstream sector, a commitment actively demonstrated by the NUPRC.
The Commission also highlighted its consistent overachievement in revenue collection, exceeding targets by 18.3% in 2022, 14.65% in 2023, and an impressive 84.2% in 2024. Between 2024 and 2025, the NUPRC sanctioned 79 Field Development Plans valued at $39.98 billion, catalyzing new capital inflows and extensive drilling operations.
Crude oil production has risen to an average of 1.65 million barrels per day, with the “Project 1mbopd” initiative aiming to boost output to 2.5 million barrels daily by 2027. Akinkuotu reiterated, “The approval of 79 Field Development Plans within this period represents a significant investment potential of nearly $40 billion.”
In addition, the Commission has revolutionized licensing rounds by fully digitizing the process to eliminate political interference. “Before the NUPRC’s establishment, licensing was shrouded in opacity. Now, with President Tinubu’s backing, the process is entirely digital, enhancing transparency and trustworthiness,” the statement explained.
Key accomplishments also include:
- Implementation of a “Drill or Drop” policy compelling operators to develop or relinquish 400 inactive fields.
- Approval of multi-billion-dollar divestments by global oil giants such as Shell, Mobil, and Equinor.
- Enactment of 19 new regulations aimed at boosting transparency and investor confidence.
- A dramatic 90% reduction in crude oil theft, dropping from 102,900 barrels per day in 2021 to just 9,600 barrels in September 2025.
- Launch of Host Community Development Trusts, channeling ₦358.67 billion into over 536 community projects.
The Commission further revealed that gas flare sites have been successfully allocated under the Nigerian Gas Flare Commercialisation Programme, expected to attract investments exceeding $2.5 billion.
“These initiatives have significantly curtailed crude oil theft. Additionally, the introduction of two pioneering regulations has laid the groundwork for enhanced transparency in hydrocarbon accounting,” the statement added.
On a broader scale, the NUPRC has taken a leadership role in establishing the African Petroleum Regulators Forum, now comprising 16 countries, to unify regulatory frameworks and amplify Africa’s collective energy influence.
In closing, the Commission, led by Gbenga Komolafe, affirmed: “The NUPRC continues to lead by example, equipping regulators with tools to harmonize oil and gas policies, facilitate cross-border infrastructure projects, standardize fiscal regimes, and strengthen Africa’s global voice in hydrocarbon advocacy.”