By Ono Yima
Nigeria’s upstream oil sector is showing renewed momentum as the number of active oil rigs operating in the country rose to 44 in July, up from 32 in May 2025 — a 37.5% increase. This growth comes amid intensified efforts by the Federal Government to curb oil theft through kinetic and non-kinetic interventions.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which disclosed this on Tuesday at the NOG Energy Week in Abuja, also revealed that a total of N326.51 billion has been disbursed to 145 Host Community Development Trusts (HCDTs) established under the Petroleum Industry Act (PIA).
According to NUPRC Chief Executive, Engr. Gbenga Komolafe, the funds represent the mandatory 3% of oil and gas companies’ operational expenditure (OPEX) and were sourced from 94 operators. The amount includes a foreign currency component converted at ₦1,529.63 to $1 as of July 1, 2025.
Komolafe highlighted the Commission’s ongoing initiatives to scale Nigeria’s crude oil production to 2.5 million barrels per day by 2026 under the Project One Million Barrels initiative. He noted that the country has already hit 1.7 million bpd, a sign of positive trajectory.
The NUPRC has approved 37 new evacuation routes as part of its effort to improve accountability and curb crude oil theft. The Commission is also collaborating with security agencies to better protect upstream oil assets.
In a push for inclusivity and sustainability, the Commission reported progress on the HostComply platform, which has brought increased transparency and governance to host communities. Komolafe said the platform helps track compliance and ensures that communities benefit directly from oil and gas development.
The Commission reaffirmed its commitment to the National Gas Flare Commercialisation Programme (NGFCP), stressing that non-compliance by operators will attract penalties. The goal is to eliminate routine gas flaring and align Nigeria’s upstream operations with global climate standards.
“We will showcase successful flare capture projects at next year’s NOG event as proof of our commitment to climate action,” Komolafe said.
The NUPRC says it remains committed to creating a robust, transparent, and accountable regulatory environment. Komolafe added that digitisation of regulatory processes is already yielding gains in investor confidence and operational efficiency.