Emmanuel Addeh in Abuja
Year-on-Year, Nigeria’s crude oil production rose about 5.7 per cent in January 2025, compared to the same period in 2024, as the country continues to battle oil theft, asset vandalism and revamp oil wells that have been dormant for years.
New data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that while oil and condensate production was 1.643 million barrels in January 2024, it grew to 1.737 million bpd as of January 2025.
According to the NUPRC data, in January this year, production came mainly from Bonny (7.57 million barrels); Brass (1.050 million barrels); Qua Iboe (4.63 million barrels); Forcados (8.86 million barrels); Excravos (4.48 million barrels); Odudu (2.33 million barrels) and Tulja-Okwuibome (2.26 million barrels).
Nigeria’s oil production has seen a gradual increase in recent months, signaling a potential recovery for the country’s struggling energy sector. As Africa’s largest oil producer, Nigeria’s economy is deeply tied to crude oil, which accounts for the majority of its export earnings and government revenue.
The rise in production comes amid ongoing efforts to combat oil theft, improve security around pipelines, and attract foreign investment into the sector. However, challenges remain, including aging infrastructure and the global shift towards renewable energy.
One of the key drivers behind the increase in oil production has been the government’s crackdown on oil theft and pipeline vandalism. For years, these illegal activities significantly reduced Nigeria’s output, with crude losses reaching hundreds of thousands of barrels per day.
Recent measures, including surveillance contracts with private security firms, have helped curb these losses, allowing more crude to reach international markets. Additionally, investments in pipeline monitoring technology have improved transparency in the sector, reducing leakages and inefficiencies.
The NUPRC said at the weekend that oil theft had decreased from about 108,000 bpd to just 5,000 bpd at the end of 2024.
Separate data seen by THISDAY indicated that since 2020, especially after the passage of the Petroleum Industry Act (PIA), the active oil rig count in the sector has risen from a low of eight to 38 as of February this year.
To a large extent, the active rig count in the oil acts as a leading indicator of demand for products used in drilling, completing, producing and processing hydrocarbons and by extension portrays the level of activities taking place in the oil industry.
After the COVID 19 pandemic in 2020, the after-effect led to the shutdown of oil wells in the Niger Delta, wherein the rig count fell to eight in 2021, before rising to an average of 10 in 2022.
But in January 2023, the number of rigs in the oil sector rose astronomically to 24 and as of December that year, peaked at 28. Nigeria started the year 2024 with 29 active oil rigs and rose to 35 at the end of last year.
According to the NUPRC data, in January 2025, Nigeria’s oil rig count increased to a record 38, a sign that drilling activities were picking up in the sector.
This is coming amid a report that Nigeria will lead other countries like Namibia, Angola and Libya as oil & gas drilling hotspots across Africa this year.
African Energy Chamber (AEC), which serves as the voice of the energy sector in Africa, said the several oil and gas exploration programmes are poised to shape Africa’s energy future in 2025, unlocking not only economic growth but also energy security.
“The deepwater drilling activities Africa oil is progressing in Nigeria encapsulate works related to the Akpo and Egina fields in the aftermath of the infill production well at Akpo. The 2024 seismic acquisition at the Agbami field is being evaluated ahead of a drilling campaign in 2026 to bolster hydrocarbon production and resource recovery in Nigerian waters,” AEC said.
Executive Chairman of AEC, NJ Ayuk, added: “Oil and gas is the lifeblood of our civilisation. Therefore exploration is the arteries and veins. We need to continue promoting policies that can fast-track exploration.
“The African Energy Chamber (AEC) will continue working with governments and the oil companies to attract foreign investment, streamline project implementation, and reduce bureaucratic bottlenecks.”
