Nigeria is moving to accelerate oil and gas development, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approving 128 wells for drilling in 2026 and reporting the successful re-entry of 77 existing wells. The figures point to renewed activity in the country's upstream sector, but they also highlight a larger challenge: translating regulatory approvals and investment plans into sustained production growth.
The Commission's Chief Executive, Oritsemeyiwa Eyesan, disclosed the figures at the Nigerian Association of Energy Correspondents' conference in Lagos on 8 October. The conference, themed Access to Assets: Empowering Players and Driving Growth, focused on improving access to petroleum resources, attracting investment and expanding production. According to the NUPRC, accelerating approval processes is part of a broader effort to help operators advance projects and increase output.
The approvals come as Nigeria continues to pursue higher crude oil production and stronger returns from its petroleum resources. However, drilling activity is only one part of the equation. The regulator disclosed that more than 788,000 barrels per day of production remain shut in across 63 operators, representing a substantial volume of output that is currently unavailable.
Shut-in production refers to oil output that has been temporarily stopped. The reasons can vary, including operational difficulties, infrastructure constraints, security challenges or commercial considerations. Consequently, restoring these volumes will require more than regulatory approvals alone; the work needed will depend on the specific circumstances affecting each operation.
This makes the relationship between new drilling and production recovery particularly important. While new wells can help develop additional reserves and support future output, returning existing wells and facilities to operation may offer another route to increasing production. The extent of that opportunity, however, will depend on how much shut-in capacity can be recovered economically and how quickly operators can resolve the issues preventing production.
Investment remains central to the production outlook
Beyond well approvals, the NUPRC is seeking to advance offshore oil and gas projects valued at between $30 billion and $50 billion to final investment decision (FID). FID is the stage at which project investors formally commit the capital required for development, making it an important milestone between planning and execution.
The Commission has also launched Nigeria's 2026 oil and gas licensing round, offering 40 blocks across onshore, shallow-water and deepwater terrains. The exercise is intended to attract investors, expand exploration and create opportunities for increased production. The regulator has said the round will feature clearer evaluation criteria, greater transparency and improved access to technical information for prospective bidders.
These initiatives reflect an effort to address several stages of the upstream investment process, from access to petroleum assets and drilling approvals to the development of larger projects. Yet the distinction between regulatory progress and actual production remains crucial. An approved well is not necessarily a completed well, and a project reaching FID does not immediately translate into barrels entering the market.
For Nigeria to realise the expected benefits, operators must be able to finance and execute their development plans, while the wider operating environment must support reliable and commercially viable production.
Turning approvals into barrels
The latest figures present a useful measure of activity in Nigeria's upstream sector, but the more significant test will be what follows. How many approved wells will be drilled and completed? How much shut-in production can operators restore? And how quickly will major offshore investments progress from proposed developments to projects delivering oil and gas?
These questions matter because increased production has implications beyond the operators themselves. Higher output can support government revenue and export earnings, while additional gas production can strengthen domestic supply for power generation and industry. Achieving those outcomes, however, depends on sustained investment, reliable infrastructure and effective project execution.
Nigeria's challenge, therefore, is not simply to drill more wells. It is to ensure that approvals lead to productive assets, that existing capacity is recovered wherever economically feasible, and that investment commitments translate into lasting gains for the country's petroleum sector.
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