Nigeria’s oil and gas exploration activities experienced a steep decline in April 2026, as upstream drilling operations slowed significantly across the country. New industry data shows that Nigeria’s oil rig count dropped by 41.7 per cent, reflecting reduced investment and weaker exploration activities in the petroleum sector.
According to the May 2026 Monthly Oil Market Report (MOMR) released by the Organization of the Petroleum Exporting Countries, Nigeria recorded just 12 active rigs in April 2026, down from 17 rigs in March 2026. This decline of five rigs within a single month highlights ongoing challenges facing upstream oil operations in the country.
The report also revealed a broader trend of weakening activity in Nigeria’s oil sector. Average rig count figures dropped from 15 in 2024 to 13 in 2025, indicating a gradual slowdown in exploration and drilling over the past year. Analysts note that rig count is a key measure used globally to assess oil industry performance, as it reflects the level of exploration, field development, and capital investment in the sector.
The latest decline comes despite continued efforts by the Nigerian government and oil companies to increase crude oil output, expand reserves, and attract new investments under the Petroleum Industry Act reforms. However, persistent operational constraints, funding limitations, and investment hesitation have continued to affect upstream expansion.
On a continental level, Nigeria’s performance contrasts with the broader African trend. Total rig activity across Africa increased slightly from 42 rigs in March 2026 to 48 rigs in April 2026. While other countries saw improvements in drilling activity, Nigeria accounted for a significant portion of the decline, making its drop more noticeable within regional comparisons.
Within the global OPEC grouping, Nigeria still ranks behind several major producers. Saudi Arabia maintained a dominant position with 265 active rigs in April 2026, followed by the United Arab Emirates with 66 rigs, and Iraq with 19 rigs. Nigeria’s relatively low rig count highlights its ongoing struggle to maintain consistent upstream momentum compared to larger oil-producing nations.
Energy analysts warn that continued low rig activity could negatively impact Nigeria’s medium- to long-term crude oil production capacity. With fewer rigs in operation, the pace of new discoveries, field development, and production expansion may slow down, potentially affecting future revenue generation and export performance.
The situation is particularly concerning as Nigeria continues to face challenges in consistently meeting its crude oil production quota assigned by OPEC. Lower exploration activity may further limit the country’s ability to increase output in the near future.
However, there are differing official figures regarding operational activity. The Nigerian Upstream Petroleum Regulatory Commission recently reported that Nigeria had about 31 active rigs, suggesting that drilling and production activities are still ongoing across several onshore and offshore oil fields. This discrepancy reflects differences in reporting methods and classification of active rigs.
Overall, the decline in rig count signals caution for Nigeria’s oil sector. While reforms and policy measures continue, sustaining long-term growth will depend heavily on renewed investment, improved operational stability, and stronger confidence from global energy investors.
