Nigeria granted 7,942 service permits for the oil and gas industry along with 49 upstream supervision licenses during the first three months of 2026, indicating ongoing operations within the nation's exploration and production segment even as the number of approvals decreased slightly from the prior quarter.
This information was revealed in the Nigerian Upstream Petroleum Regulatory Commission's Upstream Services Industry Newsletter for the first quarter of 2026.
As per the report, 7,942 permits were distributed through the Oil and Gas Industry Service Permit program from January to March 2026, alongside 49 upstream monitoring and regulatory licenses being awarded within the same timeframe.
The committee observed that permit numbers fell by 22.3 percent when compared to the fourth quarter of 2025, yet they linked this decrease to typical regulatory processes instead of a decline in industrial operations.
"Across Q1 2026, 7,942 authorizations were granted through the OGISP. This marks a decrease of 22.3 per cent from Q4 2025. The primary and specialized authorization types made up more than 90 per cent of all approvals," the document noted. "A cumulative number of 7,942 licenses were distributed under the OGISP during the first quarter of 2026. This reflects a reduction of 22.3 per cent when contrasted with the fourth quarter of 2025. Significant and specific license classifications comprised over 90 per cent of overall issued permissions," the study mentioned. "In Q1 2026, a total of 7,942 certificates were provided via the OGISP. This indicates a drop of 22.3 per cent relative to Q4 2025. Large-scale and niche certification groups represented more than 90 per cent of all certifications issued," according to the report.
The document also mentioned that the licenses included those for equipment examinations and approvals, fluid system repair authorizations, and ship permits, along with additional categories.
An analysis of licensing operations revealed that February had the most significant volume of activity, with 24 licenses issued, making up roughly 49 percent of the total licenses provided during the quarter. Licenses related to rigs constituted around 69 percent of all permits approved throughout this time frame.
The findings also indicated that primary and specialized permit types made up over 90 percent of all permits granted within the OGISP system throughout the period.
As per the commission, the upstream services sector continued to show steady performance throughout the time frame, backed by continuous licensing efforts, permit handling, and active regulatory changes designed to enhance clarity and effectiveness within the sector.
The NUPRC stated that major policy changes, improvements in licensing processes, and joint ventures carried out throughout the period contributed to boosting investor trust and facilitating operations along the entire upstream petroleum industry spectrum.
The document further emphasized ongoing advancements within the industry, such as the conclusion of a newly signed 11,700-square-kilometer 3D seismic mapping contract and unprecedented natural gas production recorded by major companies throughout the period.
As per NUPRC figures, Nigeria's operational rig count increased to 73 in March 2026, with companies continuing their drilling operations and broadening their exploration and production initiatives.
The report indicated that the count of operational rigs was 72 in January and February, then increased to 73 in March, indicating ongoing support for exploration and production activities in the oil and gas sector.
Summarizing the quarter, the commission noted that the upstream services sector showed resilience amid general industry difficulties. Revenue of N1.23 billion came from oil and gas industry service licenses.
The report mentioned that Q1 2026 showed steady performance in the upstream services sector, backed by continuous drilling activities, ongoing license issuance (49 UMR licenses), and robust OGISP income amounting to N1.23 billion.
As per the regulatory body, land-based operations continued to be the main component of Nigeria's drilling activities throughout the period.
The report indicated that offshore platforms stayed stable at 52 during the three-month span, making up the biggest portion of overall drilling operations.
The number of offshore projects rose slightly from 11 drills in January and February to 12 drills in March, whereas swamp activities stayed constant at nine drills throughout the time frame.
In explaining the trend, the commission stated, "The data indicates that Nigeria kept its drilling operations steady between January and February, with the overall number of rigs rising marginally from 72 to 73 in March."
Land-based operations had the largest number of rigs, maintaining stability in Q1 with 52 units, which contributed to the total rise. Offshore rigs stayed unchanged at 11 during January and February, then rose to 12 in March, whereas swamp rigs continued to remain at 9 consistently across the entire period.
The authority stated that the performance reflected ongoing operational reliability throughout Nigeria's oil exploration industry.
"Generally, the pattern indicates consistent drilling processes, with slight increases focused on onshore projects," the report noted.
More notably, the committee found that exploration efforts rose considerably when measured against the same time frame from the previous year.
"The report mentioned that Q1 2026 saw a rise (22.6 percent) in the overall number of rigs when compared to Q1 2025, reflecting significant expansion in exploration and production activities," the document noted.
The rise indicates that companies are boosting their exploration and production initiatives despite continuous changes implemented through the Petroleum Industry Act and the regulatory body's attempts to draw funding into the industry.
Recent data indicate that Nigeria's upstream sector continued to show strong growth during the first quarter of 2026, as higher levels of drilling operations, consistent licensing efforts, and active exploration initiatives signal renewed faith from investors in the nation's petroleum and natural gas industries.
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