Nigeria's oil and gas industry celebrated substantial achievements throughout 2025, demonstrating the nation's growing capacity and renewed investor confidence in its energy sector.

The upstream sector witnessed an impressive transformation, with rig count—a key indicator of industry activity—jumping by an remarkable 63% year-on-year. The number of active rigs climbed from 11 in November 2024 to 18 by November 2025, according to the Organisation of Petroleum Exporting Countries. The Nigerian Upstream Petroleum Regulatory Commission reported even more encouraging figures, identifying 40 active rigs operating across the country during this period.

This increased activity translated into solid oil production results, with Nigeria maintaining an average output of 1.5 million barrels per day throughout 2025. In October alone, production reached 1.597 million barrels per day including condensate, marking a meaningful increase of 16,000 barrels from the previous month. This steady performance demonstrates the country's growing operational stability and technical capability.

The gas sector emerged as a particular bright spot, with production soaring to 6,997 million standard cubic feet per day in October 2025, up significantly from 6,284 mmscf/d in September. This impressive growth reflects Nigeria's strategic focus on strengthening its gas value chain and enhancing supply to power plants, industries, and export terminals—a move that promises economic benefits across multiple sectors.

Perhaps most exciting is Nigeria's innovative approach to addressing gas flaring through the Nigerian Gas Flare Commercialisation Programme. Rather than viewing flared gas as merely an environmental challenge, the country is transforming it into an economic opportunity. The NUPRC has issued permits to 28 companies to capture and commercialize previously flared gas, turning a liability into a revenue-generating asset.

The list of awardees includes dynamic companies like Ace Energy Limited, Amazon Energy Limited, Cainergy Limited, Geospectra Energy Limited, and 24 others who are already mobilizing operations. This initiative not only reduces environmental impact but also creates jobs, generates revenue, and provides additional energy resources for the nation.

Looking ahead, optimism runs high as the NUPRC launched its 2025 Oil Licensing Round in December, the third in a series designed to attract new investors. Operating under the enhanced legal framework of the Petroleum Industry Act 2021, this licensing round offers improved regulatory clarity and investor protections that are expected to draw significant international interest.

The ripple effects of these upstream developments extend far beyond the oil fields themselves. Enhanced production capacity and new investments promise to strengthen Nigeria's downstream and midstream sectors while supporting economic growth in industries dependent on fossil fuels.

While the country continues working toward even higher production targets, the progress made in 2025 demonstrates Nigeria's resilience and the effectiveness of recent policy reforms. The combination of increased rig activity, stable production levels, surging gas output, and innovative environmental programs positions Nigeria's energy sector for continued growth and prosperity in the years ahead.