Nigeria’s upstream oil sector is displaying sturdy indicators of restoration, with a 66% surge in energetic oil rigs reflecting renewed investor confidence and the influence of sweeping reforms geared toward revitalising manufacturing.
In accordance with OPEC knowledge, the nation operated 15 rigs in August 2025, up from 9 in Might — the second-highest depend this 12 months. This rebound follows months of regular enchancment after exercise bottomed out in Might, when insecurity and value pressures curbed drilling. The uptick suggests a turnaround in exploration and improvement momentum as producers reply to a extra enticing coverage surroundings.
On the coronary heart of this resurgence is President Bola Tinubu’s Upstream Petroleum Operations Value Effectivity Incentives Order (2025), signed in Might. The chief order introduces performance-based tax incentives to reward operators who obtain verifiable price financial savings in opposition to annual benchmarks set by the Nigerian Upstream Petroleum Regulatory Fee. The initiative builds on 2024’s reform bundle, which improved fiscal phrases, streamlined undertaking approvals, and strengthened native content material guidelines.
“These incentives are a sign to the world that Nigeria is constructing an oil and gasoline sector that’s environment friendly, aggressive, and works for all Nigerians,” Tinubu mentioned. Analysts view the order as a key driver in attracting new capital and know-how to fulfill nationwide output targets.
The influence is already seen: crude manufacturing rose to 1.505 million barrels per day (bpd) in June, up 3.6% from Might, enabling Nigeria to fulfill its OPEC quota for the second time this 12 months. Sustained progress may assist stabilise oil revenues and strengthen the nation’s international alternate place.
Wanting forward, the Nigerian Nationwide Petroleum Firm (NNPC) plans to foyer OPEC for a 25% quota enhance by 2027, citing rising home refining capability led by the 650,000 bpd Dangote Refinery and several other modular tasks nearing completion.
After years of declining output attributable to oil theft, pipeline vandalism, and regulatory uncertainty, Nigeria’s upstream revival — underpinned by increased rig counts and improved governance — indicators that the nation’s long-awaited manufacturing rebound might lastly be taking maintain.
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