Nigeria’s active oil drilling rigs have increased from about 14 in 2023 to more than 60, according to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri. The minister said the sharp rise in drilling activity has occurred alongside a significant recovery in crude oil production, which has climbed from about one million barrels per day to more than 1.7 million barrels per day.
Lokpobiri disclosed the figures while highlighting developments in Nigeria’s upstream petroleum industry and the government’s efforts to attract fresh investment into the sector.
According to the minister, the increase in drilling activity reflects renewed exploration and field development across the industry. Moreover, he linked the development to reforms designed to improve regulatory certainty, restore investor confidence and create conditions for greater private-sector participation.
Oil Sector Activity Picks Up
The increase in active rigs provides an important indicator of the level of activity taking place across Nigeria’s oil-producing industry.
Drilling rigs play a crucial role in developing new wells, expanding existing fields and exploring for additional reserves. Therefore, a sustained increase in rig activity can create the foundation for higher production over time.
Nigeria’s petroleum industry had faced years of declining investment, production disruptions and weak exploration activity. Consequently, the increase from about 14 active rigs to more than 60 represents a significant change in the level of upstream activity.
However, maintaining that momentum will require continued investment and the resolution of challenges that have historically affected oil production.
Crude Production Rises Alongside Rig Numbers
The rise in drilling activity has coincided with higher crude oil production.
Lokpobiri said Nigeria’s production has increased from approximately one million barrels per day in 2023 to more than 1.7 million barrels per day.
The government has also reported that production exceeded 1.8 million barrels per day at different points in 2026, depending on the period measured and the treatment of condensates.
This increase is important because crude oil remains a major source of foreign exchange earnings and government revenue.
As a result, higher production could strengthen the petroleum sector’s contribution to the wider economy, provided Nigeria can sustain output and improve the efficiency of the value chain.
Reforms Drive Renewed Investor Interest
Lokpobiri attributed the improvement to reforms introduced in the petroleum sector under President Bola Tinubu.
The minister said the reforms are helping to create greater regulatory certainty while encouraging investors to return to exploration and production.
The Petroleum Industry Act remains a major component of Nigeria’s efforts to restructure the sector and establish a clearer regulatory framework.
Furthermore, the government has continued to address long-standing issues surrounding investment, asset divestments, field development and the operating environment.
For investors, stability remains particularly important because oil projects often require substantial capital and take years to move from exploration to production.
Fresh Investment Supports Upstream Growth
Alongside rising rig activity, the government has highlighted renewed investment in Nigeria’s oil and gas industry.
Lokpobiri has said Nigeria attracted significant fresh investment and recorded several major Final Investment Decisions in recent years.
These investments can support the development of new fields and infrastructure while creating opportunities for Nigerian companies involved in engineering, logistics, oilfield services and other areas of the petroleum value chain.
Moreover, the completion of long-delayed divestment transactions has transferred some assets from international oil companies to indigenous operators.
That development is gradually changing the structure of Nigeria’s upstream industry.
Indigenous Operators Expand Their Role
Indigenous oil companies now play a much larger role in Nigeria’s crude oil production.
Lokpobiri has said indigenous operators account for more than half of the country’s crude production, with the government recently putting their share at more than 60 percent.
The growing role of Nigerian companies could create new opportunities for local investment and capacity development.
In addition, indigenous participation can strengthen demand for domestic technical expertise, engineering services, logistics and other supporting businesses.
At the same time, international oil companies continue to participate in Nigeria’s petroleum industry, particularly through deep offshore developments where major capital investments are required.
More Rigs Could Mean More Production
The increase in active rigs could have longer-term implications for Nigeria’s production capacity.
When companies drill new wells, they can develop previously discovered resources, expand existing fields and increase recovery from producing assets.
Nevertheless, drilling more wells does not automatically guarantee higher national production.
Nigeria must also ensure that crude can move efficiently from producing fields to terminals and refineries. Pipeline infrastructure, storage facilities, security and transportation systems therefore remain essential.
Consequently, the government’s next challenge is to ensure that the increase in drilling activity translates into sustainable production gains.
Infrastructure Must Keep Pace
Lokpobiri has stressed that higher oil production must be matched by adequate infrastructure.
The country needs efficient transportation and storage systems, expanded refining capacity and competitive markets capable of handling additional petroleum volumes.
This is particularly important because increased upstream production could create pressure on existing infrastructure.
Therefore, investments in pipelines, terminals, storage facilities and refineries will remain important as Nigeria attempts to expand production.
The emergence of large-scale private refineries and the expansion of modular refining facilities have also increased domestic processing capacity.
Security Remains Important
Security remains another major factor in Nigeria’s production outlook.
Crude theft, pipeline vandalism and disruptions around oil-producing communities have historically affected production and reduced the amount of crude reaching export terminals.
As production rises, protecting oil infrastructure becomes even more important.
Consequently, sustained cooperation among government agencies, operators and host communities will be necessary to protect investments and maintain production levels.
Government Wants Production to Rise Further
Despite the reported increase in drilling activity and crude production, the Federal Government is seeking additional growth.
Lokpobiri has repeatedly stressed the importance of continued exploration and investment in achieving higher production levels.
The government has also outlined ambitious production targets for the coming years.
Reaching those targets would require additional drilling, stronger infrastructure, improved security and continued investor confidence.
Therefore, the increase in active rigs should be viewed as one component of a broader effort to rebuild Nigeria’s upstream petroleum capacity.
What the Rig Increase Means for Nigeria
The movement from about 14 active rigs in 2023 to more than 60 represents a substantial increase in drilling activity, according to Lokpobiri.
More importantly, the increase has occurred alongside higher crude production and renewed investment across the petroleum industry.
However, the real test will be whether Nigeria can sustain the momentum.
Higher rig numbers must eventually translate into additional reserves, new production, stronger revenues and greater economic value.
Ultimately, the government’s challenge is no longer simply to increase drilling activity. It must create the conditions that allow those rigs to deliver lasting production gains while ensuring that Nigeria captures more value from its oil and gas resources.
If investment, infrastructure and security continue to improve, the increase in active rigs could become an important foundation for further expansion of Nigeria’s petroleum industry.
