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Nigeria Oil Exploration Falls 41.7% as Rig Count Drops

Nigeria’s oil exploration activities declined by 41.7 percent in April 2026 following a sharp drop in upstream drilling operations and investment activities, according to the latest report released by the Organization of the Petroleum Exporting Countries, OPEC. The report showed that Nigeria’s active rig count fell from 17 in March to 12 in April 2026.

The May 2026 Monthly Oil Market Report, MOMR, released by OPEC, identified the decline in rig count as a major indicator of weakening exploration and field development activities within Nigeria’s upstream petroleum sector. Rig count is widely used across the oil industry to measure drilling activity, exploration levels, and investment trends.

According to the report, Nigeria’s reduced rig deployment reflects persistent operational and investment challenges affecting the petroleum industry despite ongoing government reforms aimed at boosting crude oil production and reserves growth.

The decline in oil exploration also followed similar downward trends recorded earlier in 2026. Previous industry data released by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, showed that Nigeria’s rig count declined significantly in February after upstream activities slowed across several producing assets.

OPEC data further indicated that Nigeria’s average rig count dropped to 13 in 2025 from 15 recorded in 2024, highlighting sustained weakness in exploration activities over the past year.

The development contrasts with the broader African trend, where total rig count increased from 42 in March 2026 to 48 in April 2026. However, Nigeria accounted for a major share of the continent’s decline in operational rigs during the period under review.

Within OPEC member states, Nigeria remained significantly behind major oil producers in active drilling operations. Saudi Arabia recorded 265 rigs in April 2026, while the United Arab Emirates and Iraq recorded 66 and 19 rigs respectively.

Industry analysts said declining oil exploration could affect Nigeria’s medium and long-term crude oil production growth if new investments and field development projects are not sustained. Experts have repeatedly linked low rig activity to reduced exploration spending, infrastructure constraints, crude theft, and regulatory uncertainties within the sector.

The decline also comes as Nigeria continues efforts to meet its crude oil production targets and OPEC quota allocations. Federal authorities have repeatedly announced measures aimed at improving investment conditions under the Petroleum Industry Act, PIA, including the “drill or drop” policy designed to discourage dormant oil licences.

Despite the latest decline, the Nigerian Upstream Petroleum Regulatory Commission recently stated that exploration and production activities remain active across several offshore and onshore assets nationwide. The commission previously disclosed that Nigeria’s total active rig count stood at 31 during ongoing upstream operations.

Analysts note that sustained recovery in oil exploration would depend on improved security in oil-producing regions, stronger regulatory implementation, increased investor confidence, and stable global oil market conditions. Nigeria’s petroleum sector remains central to government revenue generation, foreign exchange earnings, and broader economic planning.

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Victor Michael

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