Nigeria's Oil Production Booms as Active Rigs Surge By 475% in 4 Years, Driving Economic Growth
- Nigeria has made major improvements in its crude oil production, moving it up 70% from one million bpd some years ago to 1.7 million bpd
- This improvement is partly attributed to a series of reforms that have attracted increased investor activity into the country
- In a recent address, the NUPRC boss has disclosed a massive growth in the number of active oil rigs where drilling takes place
Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.
Nigeria’s oil industry has made significant progress in its rebound journey, with active oil rigs growing by almost 500% in four years.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that the number of active oil rigs grew from 8 in 2021 to 46 as of June 2025.
This marks a 475% growth in four years, and shows positive results from the several reforms in the industry.
Source: Getty Images
The NUPRC Chief Executive, Gbenga Komolafe, spoke at the opening of a media workshop for members of the Energy Correspondents Association of Nigeria (ECAN), led by John Ofikhenua.
He also disclosed that Nigeria has added 300,000 barrels of crude oil production daily since the launch of the “Project 1 Million Barrels Per Day”, a sign that production activities are improving.
What does this mean for Nigeria?
An increase in the number of oil rigs indicates an upward trend in upstream oil activities and an increase in investor confidence.
It implies that investors are injecting more capital into reactivating dormant oil wells or developing new ones. All these point to an increase in oil exploration and production in Nigeria.
The Project 1 million bpd was launched in October 2024 with the target of increasing Nigeria’s crude output by up to 1 million barrels per day (bpd)within 12 to 24 months, moving production from 1.7 mbpd to 2.6 mbpd by October 2026.
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This entailed reforms and policies to reactivate dormant oil wells, improve the security of oil infrastructure, revitalize brownfield assets, and attract fresh investments, This Day reports.
Achieving an additional 300,000bpd within nine months of the launch is therefore indicative of success in the initiative.
Note that the government has recently moved to reclaim 15 dormant oil wells from the licensees if they failed to commence operations.
NUPRC expects oil production to increase further
Komolafe remarked that even though the desired results had not yet been achieved, the sector has seen significant progress over the last few years.
Daily crude production has increased from 1 million bpd to over 1.7 million bpd, placing Nigeria among the top 5 crude producers in Africa.
He said:
“I have worked with a very resilient team that is committed to drive, to optimise, and valorise our hydrocarbon resources. The rig count today is 46. And we’re not stopping there. But, of course, it’s a leap, very geometric, but we are moving higher. The signs are positive. The feedback in the industry has been very encouraging.”
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Komolafe added that the president’s Executive Orders 40, 41, and 42, concerning various tax incentives, reform of local content law, and reduction of the contracting cycle and thresholds, also contributed to the improvements seen so far.
Source: Getty Images
Recall that the commission recently reported an annual revenue of N12.25 trillion, marking a 182.25% growth from the N4.34 trillion generated in 2023.
Dangote Refinery set to stop importing crude
In related news, Dangote Refinery has confirmed plans to stop importing crude oil from suppliers outside the country.
Legit.ng reported that several of the long-term supply contracts will expire by December 2025.
The Vice President of Dangote Industries Limited (DIL) confirmed that the refinery would then focus on local Nigerian crude producers for supply.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
