Nigeria’s upstream oil and gas exploration slowed markedly in February 2026, as operational rig activity dropped across fields nationwide.

Data from the Nigerian Upstream Petroleum Regulatory Commission show that active rigs fell to 22 in February from 40 in January, reflecting reduced drilling and exploration work during the month. Although the country’s total rig capacity remained at 72, more units were left idle, with standby rigs rising from 11 to 25 over the same period.

Industry observers link the slowdown to delays around contract finalisation. Port Harcourt–based energy analyst Bala Zakka said discussions are ongoing and expects drilling and other upstream operations to rebound in the second quarter once agreements are concluded.

Colman Obasi, President of the Oil and Gas Services Providers Association of Nigeria, urged stronger upstream investment, noting that deploying more rigs is essential to unlock new discoveries and grow reserves.

The regulator says it is stepping up efforts to revive exploration. The Commission’s Chief Executive, Oritsemeyiwa Eyesan, pointed to enforcement of Section 94 of the Petroleum Industry Act known as the “drill or drop” rule which requires licence holders to either begin work on allocated assets or relinquish them.

Eyesan said the policy has released previously dormant blocks back into the market and attracted serious bidders to the ongoing 2025 licensing round. According to her, 50 oil blocks are on offer and early stages of the process have recorded strong investor interest.

She added that the approach reduces uncertainty in the sector and could support more frequent bid rounds, while helping Nigeria expand its petroleum reserves through sustained exploration.