Nigeria's upstream oil and gas industry maintained strong operational momentum in the first quarter of 2026, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) issuing 7,942 Oil and Gas Industry Service Permits (OGISP) and 49 Upstream Monitoring and Regulation (UMR) licences, underscoring sustained investment and regulatory activity across the sector.
The figures were disclosed in the commission's Upstream Service Industry Newsletter for the first quarter of 2026, which highlighted continued resilience in Nigeria's petroleum industry despite a decline in permit volumes compared to the previous quarter.
According to the report, the number of service permits issued between January and March 2026 fell by 22.3 per cent compared to the fourth quarter of 2025. However, the regulator attributed the decline to normal regulatory cycles rather than a slowdown in industry operations.
"A total of 7,942 permits were issued under the OGISP in Q1 2026. This represents a 22.3 per cent decline compared to Q4 2025. Major and specialised permit categories accounted for over 90 per cent of total permits issued," the report stated.
Licensing Activity Remained Robust
Beyond service permits, the commission granted 49 upstream monitoring and regulation licences, covering activities such as rig inspections and certifications, hydraulic workover certifications and vessel licensing.
Licensing activity peaked in February, when 24 licences—representing nearly 49 per cent of the quarterly total—were issued.
The report also showed that rig-related licences accounted for approximately 69 per cent of all approvals granted during the period, reflecting continued focus on drilling and exploration activities.
According to the NUPRC, the upstream service sector remained stable, supported by efficient permit processing, sustained licensing activities and regulatory reforms aimed at improving transparency and operational efficiency.
The commission noted that recent policy initiatives, licensing improvements and strategic industry collaborations have continued to strengthen investor confidence and support operations throughout the upstream petroleum value chain.
New Exploration Projects and Record Gas Production
The report highlighted several milestones achieved during the quarter, including the execution of a new 11,700-square-kilometre 3D seismic survey agreement, alongside record gas production levels recorded by key industry operators.
These developments, the commission said, reinforce ongoing efforts to expand exploration activities and unlock additional hydrocarbon resources.
Active Rig Count Climbs
Nigeria also recorded higher drilling activity during the quarter, with the country's active rig count increasing to 73 in March 2026, up from 72 rigs recorded in both January and February.
The increase reflects sustained investment by operators expanding exploration and production programmes across the country.
Providing a breakdown of drilling operations, the commission noted that land-based rigs remained dominant, holding steady at 52 rigs throughout the quarter and accounting for the largest share of drilling activity.
Meanwhile, offshore operations increased slightly from 11 rigs in January and February to 12 rigs in March, while swamp operations remained unchanged at nine rigs during the three-month period.
Explaining the trend, the commission stated:
"The data shows that Nigeria maintained stable rig activity from January to February, with total rigs increasing slightly from 72 to 73 in March."
It added:
"Land operations accounted for the highest number of rigs, as it remained stable in Q1 with 52 rigs and drove the overall increase. Offshore rigs remained steady at 11 January and February and increased to 12 in March, while swamp rigs were constant at 9 throughout the period."
According to the regulator, the figures demonstrate continued operational stability across Nigeria's upstream petroleum sector.
"Overall, the trend reflects stable drilling operations, with marginal growth concentrated in land-based activities," the report added.
Rig Activity Jumps Over 22% Year-on-Year
More significantly, the commission reported a substantial increase in drilling activity compared to the same period in 2025.
"Q1 2026 showed an increase (22.6 per cent) in total rig count compared to Q1 2025, indicating strong growth in upstream activity," the report stated.
The year-on-year growth suggests that operators are accelerating field development programmes amid reforms introduced under the Petroleum Industry Act (PIA) and the Federal Government's broader efforts to attract investment into Nigeria's oil and gas sector.
N1.23 Billion Generated From Service Permits
The report also revealed that the commission generated ₦1.23 billion from Oil and Gas Industry Service Permits during the first quarter of the year, reflecting steady demand for regulatory approvals.
Summarising industry performance, the regulator stated:
"Q1 2026 reflected stable upstream service sector performance, supported by consistent rig activity, sustained licensing (49 UMR licences), and strong OGISP revenue generation of N1.23bn."
With rising drilling activity, ongoing exploration projects, sustained licensing and continued regulatory reforms, the latest NUPRC report points to renewed confidence in Nigeria's upstream petroleum industry as operators continue to expand investment and production activities despite broader industry challenges.