Nigeria’s oil industry is gaining serious ground, with the number of active drilling rigs soaring to 44, a major jump from just eight in 2020. The turnaround comes as government reforms and investor incentives fuel fresh momentum across the upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the figures on Wednesday during the Nigerian Oil & Gas Energy Week in Abuja. Commission head Gbenga Komolafe credited the rise to targeted executive orders signed under President Bola Tinubu, which have helped attract more than $16 billion in new oil and gas investment over the past two years.
“This is not just recovery , it’s a repositioning,” Komolafe said during his presentation.
Among the key drivers is the 2024 rollout of fiscal incentives, local content reforms, and streamlined contract timelines. These policies, Komolafe said, are helping fast-track production projects, reduce bottlenecks, and reawaken previously dormant oil fields.
The push is anchored on the “Project One Million Barrels” initiative, a national effort to raise daily crude output to 2.5 million barrels by 2026. Current output has already reached 1.7 million barrels per day.
Security and accountability are also getting attention. The NUPRC has approved 37 new crude evacuation routes and is working closely with security agencies to curb oil theft and protect infrastructure.
Meanwhile, the Commission is strengthening domestic refining by enforcing local crude supply obligations, a move aimed at reducing Nigeria’s reliance on imported fuel and building a more resilient local value chain.
Komolafe also highlighted the impact of digital transparency tools like the HostComply platform, which are helping ensure host communities receive tangible benefits and maintain peace in oil-producing regions.
Globally, demand for oil and gas is expected to remain strong through 2050. Komolafe warned that failure to invest now could leave Nigeria behind.
“We’re stepping up to secure our share of the future,” he said. “And the results are already showing.”
