By Charles Pemu 
ABUJA—Nigeria’s upstream oil and gas sector is experiencing a massive turnaround, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). In a statement marking its fourth anniversary, the NUPRC reported a remarkable surge in active drilling operations, with the country’s rig count rising nearly ninefold, from just eight in 2021 to 69 as of October 2, 2025.
The significant rise in active rigs reflects renewed investor confidence and demonstrates the growing stability of Nigeria’s petroleum industry, said Eniola Akinkuotu, the Commission’s Head of Media and Strategic Communication. The NUPRC noted that the number is expected to climb further, aligning with President Bola Tinubu’s commitment to creating the right investment climate.
One of the most dramatic achievements reported is the sharp reduction in crude oil theft, a long-standing crisis that has plagued the economy.
Through the combined efforts of security forces, private security contractors (including TANTITA), and the introduction of NUPRC’s pioneer regulations—the Upstream Measurement Regulation and the Advanced Cargo Declaration Regulation—average daily crude oil losses have been cut by 90 per cent. Losses have fallen from 102,900 barrels per day (bpd) in 2021 to a significantly lower 9,600 bpd in September 2025.
Driving Accountability and Investment
The NUPRC has initiated several reforms to ensure optimal asset utilization and transparency:
- Drill or Drop Policy: The Commission implemented this policy, in line with the Petroleum Industry Act (PIA) 2021, compelling companies to make efficient use of oil blocks or relinquish them. This initiative has already identified 400 dormant oil fields and spurred previously complacent oil companies into action.
- Regulatory Framework: The NUPRC has developed 24 forward-thinking Regulations in consultation with stakeholders to ensure transparency and best practices. So far, 19 of these are gazetted, with five awaiting formal gazetting.
- Transparent Bid Rounds: The Commission highlighted the transformation of licensing rounds, which were previously opaque and politically influenced. With the support of President Tinubu, the NUPRC has implemented a fully digital, transparent bid process, a move acknowledged by the Nigeria Extractive Industries Transparency Initiative (NEITI).
- Divestment Approvals: To facilitate portfolio restructuring, the NUPRC approved billions of dollars in major divestment deals in 2024. These included transactions involving Nigeria Agip Oil Company (NAOC) to Oando Energy Resources; Equinor to Chappal Energies; Mobil Producing Nigeria Unlimited to Seplat Energies; and Shell Development Company Nigeria Limited to Renaissance Africa Energy.
Community Funds and Gas Flare Reduction
In its commitment to environmental sustainability and community welfare, the NUPRC reported significant remittances to Host Community Development Trusts (HCDTs). The trusts have received a combined remittance of over N358.67 billion (comprising N122.34 billion and over $168.91 million) as of October 2025. These funds are currently supporting at least 536 projects at various stages of completion, including schools, health centres, roads, and vocational centres, achievements that have reportedly helped curb crude oil theft.
Furthermore, the Commission is making progress with the Nigerian Gas Flare Commercialisation Programme (NGFCP), which seeks to end routine gas flaring and attract up to $2.5 billion in fresh investments. The awards for flare sites under the program have been completed, marking a major step toward energy diversification and environmental responsibility.
In a recent regulatory action, the NUPRC revoked the operating licence of the Oritsemeyin Rig in September following serious safety concerns and operational failure related to a “kick”—an unwanted flow of formation fluids—during a drilling incident at the UDIBE-2 wellbore.