By Firdaus Jibril
Nigeria’s active oil rig count increased by 20 percent in the first seven months of 2026, rising from 15 rigs in January to 18 rigs in July, according to data from the Organisation of the Petroleum Exporting Countries (OPEC).
The increase points to stronger drilling activity in Nigeria’s upstream oil sector, as operators step up activities aimed at sustaining and increasing crude oil production.
OPEC data cited in its latest Monthly Oil Market Report showed that Nigeria’s rig count remained at 16 during the first and second quarters before rising to 18 in June and remaining at that level in July. Nigeria averaged 13 active rigs in 2025, compared with 15 in 2024 and 14 in 2023.
The increase in drilling activity coincided with higher crude production during the first half of the year.
Nigeria’s crude production averaged about 1.45 million barrels per day in the first quarter of 2026 before rising to about 1.55 million barrels per day in the second quarter, representing an increase of about 6.8 percent.
Production reached about 1.583 million barrels per day in June, before declining to approximately 1.546 million barrels per day in July.
Despite the July decline, output levels remained above Nigeria’s 2025 average of about 1.51 million barrels per day.
The July production decline was linked to operational challenges at the Erha and Akpo fields, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The regulator said production operations at most other producing assets remained stable.
The increase in rig activity is significant for Nigeria because active rigs indicate ongoing drilling and investment in future oil production.
Higher drilling activity also creates demand for oilfield services, drilling contractors, and other companies involved in upstream operations.
Nigeria has been seeking to raise crude production through regulatory reforms, increased investment, and measures aimed at improving the operating environment for oil producers.
The recovery in drilling activity comes after several years of relatively weak investment in the upstream sector, which was affected by crude theft, pipeline security challenges, operational disruptions, and uncertainty around investment.
With 18 active rigs in June and July, the latest data suggests that drilling activity has improved from the lower levels recorded in previous years, although the increase has not yet translated into a sustained month-on-month rise in crude production.
The development will be closely watched as Nigeria seeks to increase oil output, strengthen export earnings, and improve government revenue from the petroleum sector.