Nigeria’s upstream petroleum service industry recorded a resilient performance in the first quarter of 2026, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) generating N1.24 billion in revenue from industry service permits.
According to the commission’s Q1 2026 Upstream Service Industry Newsletter, the period was characterised by stable rig operations, sustained licensing activities and ongoing regulatory reforms aimed at improving transparency, operational efficiency and investor confidence in the sector.
Specifically, the report showed that revenue generated under the Oil and Gas Industry Service Permit (OGISP) scheme stood at N1.237 billion during the quarter, with February accounting for the highest monthly earnings of N574.1 million. The specialised services category contributed about 90 per cent of total revenue.
The commission said that although permit volumes moderated compared to the previous quarter, the trend reflected normal regulatory cycles rather than a slowdown in industry activity.
It stated that upstream operations remained robust, supported by consistent rig activity of between 72 and 73 rigs, the issuance of 49 Upstream Monitoring and Regulation (UMR) licences, processing of 7,942 OGISP permits and a record gas output of 2.2 billion cubic feet by key operators.
The NUPRC disclosed that the 49 UMR licences covered rig, hydraulic workover and vessel certifications, with February recording the highest licensing activity at 24 approvals, representing almost half of the total issued during the quarter. Rig licences accounted for about 69 per cent of all approvals, underscoring sustained investment in drilling operations and asset certification.
On drilling activity, the commission reported that Nigeria maintained stable rig operations throughout the quarter, with active rigs rising marginally from 72 in January and February to 73 in March. Land operations remained the dominant segment with 52 rigs throughout the quarter, while offshore rigs increased from 11 to 12 by March. Swamp operations remained unchanged at nine rigs.
Compared to the corresponding period of 2025, the total rig count rose by 22.6 per cent, which the regulator described as evidence of growing upstream activity and sustained investment in exploration and production.
“Q1 2026 reflected stable upstream service sector performance, supported by consistent rig activity (72–73 rigs), sustained licensing (49 UMR licenses), and strong OGISP revenue generation of N1.23 billion. While permit volumes moderated from Q4 2025, this aligns with normal regulatory cycles rather than a decline in activity.
“Revenue peaked in February before normalising in March, with specialisedservices driving most earnings. A 22.6 per cent year-on-year increase in rig activity highlights continued operational momentum. Key policy reforms, licensing advancements, and strategic collaborations during the quarter further strengthened transparency, efficiency, and investor confidence within the sector,” it stated.
The report also revealed that 7,942 OGISP permits were processed during the quarter, representing a 22.3 per cent decline from the preceding quarter. However, the commission stressed that major and specialised permit categories continued to account for more than 90 per cent of approvals, indicating sustained demand for critical upstream services.
In addition, the quarter witnessed the signing of an agreement for an 11,700 square kilometre 3D seismic survey under Petroleum Exploration Licence 5 (PEL5).
Overall, the NUPRC said policy reforms, licensing improvements and strategic collaborations undertaken during the quarter had strengthened regulatory transparency, enhanced operational efficiency and reinforced investor confidence in Nigeria’s upstream petroleum industry.
Emmanuel Addeh
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