Nigeria issued 7,942 oil service permits, 49 licences in Q1 2026 — NUPRC report
By Aboki Forex —
Nigeria issued 7,942 oil and gas industry service permits and 49 upstream monitoring licences in the first quarter of 2026, according to the Nigerian Upstream Petroleum Regulatory Commission. The figures, contained in the NUPRC’s Upstream Service Industry Newsletter for Q1 2026, show sustained activity in the upstream petroleum sector despite a moderation in permit volumes compared to the previous quarter.
Permit volumes drop 22.3% but regulator says it is normal
The commission reported that permit volumes declined 22.3 per cent compared to the fourth quarter of 2025. However, it attributed the drop to normal regulatory cycles rather than a slowdown in industry activity. “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.
The report also showed that 49 upstream monitoring and regulation licences were granted during the period. These covered rig inspections and certifications, hydraulic workover certifications, and vessel licences, among others. February recorded the highest licensing activity, accounting for 24 licences, or about 49 per cent of the total. Rig-related licences represented approximately 69 per cent of all approvals granted in the quarter.
Rig count rises to 73, land operations dominate
According to NUPRC data, Nigeria’s active rig count rose to 73 in March 2026, up from 72 in January and February. The report noted that land operations remained the dominant segment of drilling activity, with land-based rigs steady at 52 throughout the three-month period. Offshore operations increased modestly from 11 rigs in January and February to 12 rigs in March, while swamp operations remained unchanged at nine rigs.
Compared to the same period in 2025, drilling activity increased substantially. “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 regulator said the trend reflects stable drilling operations with marginal growth concentrated in land-based activities.
Revenue hits N1.23bn, seismic survey deal signed
The NUPRC reported that N1.23bn was generated from oil and gas industry service permits in the quarter. “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,” the report stated.
The commission also highlighted progress in the sector, including the signing of a new 11,700-square-kilometre 3D seismic survey agreement and record gas output achieved by key operators during the quarter. The regulator said key policy reforms, licensing advancements, and strategic collaborations helped strengthen investor confidence and support operational activities across the upstream oil and gas value chain.
The latest figures suggest that Nigeria’s upstream industry maintained positive momentum in the first quarter of 2026, with increased drilling activity, sustained licensing and ongoing exploration programmes providing fresh signals of investor confidence in the country’s oil and gas sector. For the naira and Nigerian businesses, sustained upstream activity supports government revenue and foreign exchange earnings, which could help stabilise the currency and improve liquidity in the forex market over time.