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Nigeria Sees Sharp Increase In Active Oil Rigs Following Industry Reforms

Nigeria’s upstream oil sector has recorded a major rebound, with the number of active oil rigs rising from eight in 2021 to 46 as of July 2025, according to new figures from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Mr Gbenga Komolafe, NUPRC’s Chief Executive, revealed the data on Wednesday at the opening of a specialist media workshop for energy journalists in Abuja. The rig count is widely recognised as a key indicator of exploration and drilling activity, as well as broader sector performance.

Komolafe attributed the steady increase to the transformative impact of the Petroleum Industry Act (PIA), enacted in 2021, and to the commission’s flagship Project One Million Barrels initiative. Since its launch in October 2024, the programme has lifted daily production by approximately 300,000 barrels, with output now nearing 1.7 million barrels per day.

The NUPRC chief also commended President Bola Tinubu for signing Executive Orders 40, 41 and 42 last year, which introduced tax incentives, promoted local content, and shortened contract approval timelines. These reforms, Komolafe said, have helped attract substantial new investment into Nigeria’s oil and gas sector.

“These Executive Orders have catalysed several Final Investment Decisions (FIDs), bringing in billions of dollars to support the industry’s growth,” he noted.

Komolafe encouraged journalists to help the public understand the commission’s regulatory function, pointing out that while the NUPRC oversees compliance and mediates disputes, it does not engage directly in oil production.

“Often people misunderstand the difference between a regulator and an operator,” he said. “Our role is to ensure fairness, transparency and adherence to industry standards.”

 

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