Nigeria’s oil industry has recorded a remarkable increase in rig count, surging by 400 percent over the past four years. This significant rise has contributed to an improvement in the country’s crude oil production output.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed this development in Abuja, stating that the country’s active rig count has reached 40, a sharp increase from the eight rigs recorded in 2021. This surge underscores the commission’s commitment to enhancing upstream activities and expanding crude oil production capacity. The increase in rig count is largely attributed to the positive impact of the Petroleum Industry Act (PIA), which has created a more conducive environment for investment and operational efficiency in the sector.
At the ongoing Nigerian International Energy Summit (NIES) in Abuja, the Commission Chief Executive of NUPRC, Gbenga Komolafe, highlighted that the Nigeria Gas Flare Commercialisation Programme (NGFCP) could unlock up to $2.5 billion in investments within the oil and gas sector. This, he said, would significantly boost government revenue while addressing environmental concerns associated with gas flaring.
Launched as a strategic initiative by the Nigerian government, the NGFCP aims to eliminate gas flaring through economically viable solutions, transforming a wasteful environmental issue into an economic opportunity. The programme is also positioned as a critical pathway toward achieving Net Zero Carbon Emission goals.
Komolafe emphasized that as the global energy sector shifts focus toward a low-carbon future, the commission is integrating sustainability measures such as the NGFCP into upstream operations to mitigate environmental risks and protect communities. In the short term, he noted, the federal government has set new benchmarks for oil and gas production, with expectations that the rig count will reach 50 by the end of 2025.
“In pursuit of our goal to reach 40 billion barrels of oil and 220 trillion cubic feet of gas, we have vigorously pursued strategies to stimulate exploration activities and accelerate development. As part of these efforts, the Commission successfully completed the 2022/2024 bid licensing round and awarded 27 Petroleum Prospecting Licenses (PPLs) across various terrains.
“Our achievements speak for themselves: between 2023 and 2024, oil reserves increased by 1.43 percent, reaching 37.5 billion barrels, while gas reserves grew by 0.21 percent, reaching 209.26 trillion cubic feet. Rig count increased from eight in 2021 to 40 in 2025 and is projected to reach 50 before year-end, while production increased by 70 percent from one million barrels per day in 2021 to the current level of approximately 1.75 million barrels per day,” Komolafe said.
He further stated that Nigeria’s vast oil reserves present a unique opportunity for economic growth and transformation. While current production averages 1.75 million barrels per day, the technical potential stands at 2.24 million barrels per day. To bridge this gap, efforts are being made to enhance transparency, foster collaboration with exploration and production companies, ensure financial viability, fast-track field developments, adopt advanced oil recovery technologies, reduce costs, eliminate entry barriers, and optimize production.
“The potential for increased production is immense, and NUPRC is committed to unlocking every opportunity. Our efforts to reactivate shut-in wells and leverage low-hanging fruit opportunities will bring us closer to actualizing the Project 1MMbopd additional production target recently launched by the Commission.
“We are steadily progressing actions on the Advanced Cargo Declaration Solution and the Engineering Audit of Upstream Measurement Equipment and Facilities as part of our non-kinetic approach to combat crude theft, eliminate revenue leakage, and maximize value,” he added.
Nigeria aims to capitalize on this growth to meet its ambitious production targets and establish itself as a competitive player in the global oil market. However, challenges such as infrastructure constraints and security issues persist, requiring sustained efforts to ensure long-term growth in the sector.
