PIA Drives 762% Surge in Rig Count, Boosts Investor Confidence – NUPRC
Nigeria’s upstream petroleum regulator has reported sweeping gains in the oil and gas sector, announcing a 762 per cent rise in rig count alongside billions of dollars in new investments and major reforms four years after its establishment.
The Nigerian Upstream Petroleum Regulatory Commission, in a statement signed by its Head of Media and Strategic Communication, Eniola Akinkuotu, on Sunday, said its achievements since the passage of the Petroleum Industry Act had restored investor confidence, curbed crude theft, and positioned Nigeria for long-term energy growth.
The Commission disclosed that active rig count jumped from eight in 2021 to 69 as of October 2025, describing the surge as a testament to renewed investor interest in Nigeria’s oil and gas industry. Of this, 40 rigs are currently active, while the rest are on standby or in transit.
“The Nigerian Upstream Petroleum Regulatory Commission has published a list of 16 high-impact achievements four years since its establishment and has called on Nigerians to take note of the myriad high-impact achievements of the Commission in the last four years, despite the legacy challenges it inherited from the pre-Petroleum Industry Act era.
“As a testament to the renewed vigour in Nigeria’s upstream oil and gas sector, the rig count rose geometrically from eight in 2021 to 69 as of October 2, 2025. The latest rig count of 69, which comprises 40 active rigs, 8 on standby, 5 on warm vstack, 4 on cold stack and 12 on the move, represents a 762.5 per cent increase in barely four years. The number is expected to increase even further in the coming months. This shows a renewed investor confidence in Nigeria. The success aligns with the charge of President Tinubu that Nigeria is ready for business and that the right investment climate prevails now in the Nigerian upstream, as daily actioned by the NUPRC.
“This is clear evidence that Nigeria is once again open for business, and the upstream environment is attracting serious exploration and development activity,” the statement read in part.
The NUPRC said the oil industry is a fact-based industry with clear metrics for adjudging performance.
On revenue, the regulator said it consistently outperformed government targets, exceeding its collection benchmarks in 2022, 2023, and 2024 by 18.3 per cent, 14.65 per cent, and 84.2 per cent, respectively. It added that between 2024 and 2025, 79 Field Development Plans valued at $39.98bn were approved, unlocking fresh capital inflows and exploration projects.
The NUPRC also highlighted gains in crude oil production, with output now averaging 1.65 million barrels per day, and a “Project 1mbopd” initiative designed to lift production to 2.5 million barrels daily by 2027.
Akinkuotu said, “The Commission consequently outlined some of its high-impact achievements as follows: In 2022, 2023 and 2024, the Commission surpassed its revenue target by 18.3 per cent, 14.65 per cent and 84.2 per cent, respectively, despite fluctuations in oil production and prices, thus contributing largely to our nation’s economic growth.
“Potential Investment of $39.98bn from FDPs
Between 2024 and 2025, the Commission has approved 79 Field Development Plans (FDP) (41 in 2024 and 38 YTD 2025 with a potential investment of $39.98bn. This comprises $20.55bn in 2024 and $19.43bn in YTD 2025.
“Since the inception of Commission, is crude oil production has increased with current average daily production of 1.65Mbopd expected to increase further with the Project 1 Mbopd initiative, which is aimed at achieving 2.5 Mbopd in 2027, compared to NUPRC commencement.”
Beyond production and revenues, the regulator credited its digitalised licensing rounds for restoring credibility to oil block bid processes, saying transparency levels were unprecedented and certified by the Nigeria Extractive Industries Transparency Initiative.
It listed other achievements, including: the implementation of a “Drill or Drop” policy that forced idle operators to act on 400 dormant fields; approval of billion-dollar divestments involving multinationals such as Shell, Mobil and Equinor; and the rollout of 24 forward-looking regulations to drive investment and transparency.
“Prior to the establishment of the Commission, the licensing rounds were opaque. They were beclouded by political influence, which made the process lack credibility. However, the NUPRC, with the support of President Bola Tinubu, transformed the process to be fully digital, thereby enhancing transparency and credibility. It was the most transparent bid round on record in Nigeria’s upstream petroleum history as it leveraged digital technology, devoid of any human interference, in a manner adjudged to be in line with global best practices, which was even attested to by the Nigeria Extractive Industries Transparency Initiative.
“The Commission, in line with the PIA, 2021 and with the support of President Bola Tinubu, is implementing the ‘Drill or Drop’ policy, which prescribes that unexplored acreages are to be relinquished. This is designed to ensure the optimal use of oil assets and prevent dormant fields from tying up potential reserves. This policy successfully identified 400 dormant oil fields and has also propelled complacent oil companies to take quick action,” It noted.
The statement further disclosed that Host Community Development Trusts had remitted over N358.67bn, funding more than 536 projects in schools, roads, and healthcare across oil-producing communities.
Crude oil theft, a longstanding threat to Nigeria’s revenues, was said to have dropped by 90 per cent, from 102,900 barrels per day in 2021 to 9,600 barrels per day in September 2025, following joint military-security operations and the enforcement of new hydrocarbon measurement regulations.
The Commission added that it had successfully awarded flare sites under the Nigerian Gas Flare Commercialisation Programme, targeting $2.5bn in fresh investments to eliminate flaring and promote energy transition.
“To give meaning to the intent of the PIA, 2021, the Commission, in consultation with stakeholders, has developed 24 forward-thinking Regulations. So far, 19 have been gazetted while 5 await gazetting. These forward-thinking Regulations serve as tools for transparency and the creation of an enabling investment climate and benchmark best practices.
“The NUPRC completed awards of flare sites to successful bidders under the Nigerian Gas Flare Commercialisation Programme. The programme is aimed at eliminating gas flaring and attracting at least 2.5 billion dollars in investments.
“Host Community Development Trusts have remitted N122.34bn in naira, while dollar contributions stand at over $168.91m as of October 2025. This translates to a combined remittance of over N358.67bn based on the prevalent exchange rate, in enthroning a conducive host community environment in Nigeria.
Over 536 ongoing community projects
Still on the host community, the NUPRC is overseeing at least 536 projects at various stages of completion including schools, health centres, roads and vocational centres. These are being funded by the trust fund. The achievement has tremendously curbed crude oil theft.
“In 2021, the average daily crude oil losses stood at 102,900 barrels per day or 37.6 million barrels per year. However, due to combined efforts of the General Security Forces and Private Security Contractors (TANTITA) as well as the collaborative effort of the Commission, this has reduced by 90 per cent to specifically 9,600bpd in September 2025. Furthermore, two pioneer regulations introduced by the Commission have also contributed to the success, namely: The Upstream Measurement Regulation and the Advanced Cargo Declaration Regulation, respectively, have contributed as pioneer efforts at achieving transparency in hydrocarbon accounting.”
Beyond Nigeria’s borders, the NUPRC said it had championed the creation of the African Petroleum Regulators Forum, which now unites 16 African countries to harmonise policies and strengthen the continent’s voice in global energy governance.
The Commission’s scorecard demonstrates the long-awaited impact of the PIA in restructuring Nigeria’s oil and gas sector, though challenges remain around meeting ambitious production targets and sustaining investment flows.
“The Engr Gbenga Komolafe-led NUPRC has continued to show leadership and provide regulators with the mechanism to harmonise oil and gas development policies to facilitate cross-border infrastructure development, benchmark fiscals and present strong voice for Africa in hydrocarbon advocacy globally,” the statement concluded.