Nigeria’s oil exploration dropped by 45 per cent month-on-month (MoM) in February 2026, driven by a slowdown in upstream operations. Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed the nation’s rig count, a key indicator of upstream oil and gas activity, fell to 22 in February from 40 in January.
While the NUPRC did not provide official reasons for the decline, industry sources linked it to limited exploration activities during the period. Standby rigs, however, rose sharply to 25 in February from 11 in January, while the total rig count remained at 72.
Energy analyst Bala Zakka noted that ongoing contract discussions could boost upstream activity in the second quarter once agreements are finalised. Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria, urged increased upstream investment to enhance exploration and grow reserves.
NUPRC Chief Executive Oritsemeyiwa Eyesan emphasised strict enforcement of the Petroleum Industry Act (PIA) Section 94, known as the “drill or drop” provision, which compels operators to commence work on allocated assets or relinquish them. She highlighted that the 2025 licensing round, offering 50 oil blocks, has attracted strong investor interest, signalling potential growth in Nigeria’s petroleum reserves.
Eyesan added that the new licensing approach reduces sector uncertainties, allowing both small and large players to actively pursue exploration opportunities.
