Nigeria’s oil industry showed little momentum in November, with the country operating 41 active rigs, down slightly from 43 in October and unchanged from the same period last year, according to data released by Baker Hughes.
Gatekeepers News reports that the stagnant rig count contrasts sharply with developments across the Organisation of the Petroleum Exporting Countries (OPEC), where collective drilling activity rose to 1,271 rigs, representing a seven per cent increase year-on-year. The divergence highlights Nigeria’s continued struggle to capitalise on stable crude oil prices and meet its production targets.
While several OPEC members ramped up drilling, Nigeria’s rig count remained flat at 41, underscoring persistent challenges in Africa’s largest oil-producing nation.
Industry analysts say the stagnation reflects deeper structural issues, including chronic underinvestment, insecurity in oil-producing regions, regulatory bottlenecks, and ageing infrastructure. Crude oil theft and the slow implementation of the Petroleum Industry Act (PIA) have further discouraged both local and foreign investors.
Saudi Arabia led OPEC’s drilling expansion with 232 active rigs, followed by the United Arab Emirates with 71 and Kuwait with 40. Iran maintained 117 rigs despite Western sanctions, while Iraq operated 62. Nigeria, however, has yet to align its rig activity with its OPEC production quota, leaving substantial potential revenue untapped.
Global oil prices have remained within a relatively narrow range this year, with Brent crude trading between $75 and $85 per barrel. Although these prices are profitable for most producers, they have failed to trigger increased drilling activity in Nigeria, highlighting that the country’s challenges are more structural than market-driven.
Among non-OPEC producers, drilling activity was mixed. The United States led with 549 rigs, Canada operated 193, Mexico 28, Russia maintained 320 despite sanctions, and China recorded 835 rigs as it prioritised energy security. Globally, the rig count stood at 1,883 in November, up 12 rigs from a year earlier, reflecting cautious optimism amid geopolitical tensions and pressures from the energy transition.
For Nigeria, the implications of a stagnant rig count extend beyond the oil sector. Idle rigs translate to lost production, reduced revenue, and fewer employment opportunities—critical concerns as the country grapples with rising debt and currency pressures.
Analysts argue that reversing the trend will require sustained reforms, improved security in oil-producing regions, and a more attractive investment climate to draw both indigenous and international operators.
Without decisive action, they warn, Nigeria risks falling further behind regional competitors such as Angola, which, despite facing similar challenges, has shown signs of stabilisation and gradual growth in its oil sector.
