Nigeria’s oil industry remained stuck at a neutral level last month as the country operated 41 rigs in November, down slightly from 43 in October and unchanged from a year earlier, Baker Hughes data stated.
The flat rig count contrasts with other OPEC nations, which collectively increased their drilling activity to 1,271 rigs, a seven per cent jump from last year, underscoring Nigeria’s struggle to capitalise on steady crude prices and meet production targets.
While fellow OPEC members ramp up drilling, Nigeria’s 41 rigs remain unchanged from a year ago, highlighting persistent sectoral challenges.
The stagnation reflects deeper structural issues within Africa’s largest crude producer. Underinvestment, security challenges, regulatory delays, and ageing infrastructure continue to limit production, while crude theft and slow implementation of the Petroleum Industry Act (PIA) further deter both local and international investors.
Saudi Arabia led the OPEC expansion with 232 active rigs, followed by the UAE at 71 and Kuwait at 40. Iran maintained 117 rigs despite Western sanctions, and Iraq operated 62 units. Meanwhile, Nigeria has yet to align its rig count with its OPEC quota, leaving significant potential revenue unrealised.
Global oil prices have remained in a relatively narrow band this year, with Brent crude trading between $75 and $85 per barrel. While profitable for most producers, these levels have not led to a surge in Nigerian drilling, highlighting the sector’s vulnerability to structural and operational challenges, rather than market incentives alone.
Non-OPEC producers showed mixed activity, with the United States leading with 549 rigs, Canada operating 193, Mexico 28, Russia 320, despite sanctions, and China 835, prioritising energy security. Globally, the rig count reached 1,883 in November, up 12 units from the previous year, reflecting cautious optimism amid geopolitical tensions and pressures from the energy transition.
For Nigeria, the stagnant rig count carries broader economic implications. Idle rigs represent lost barrels, revenue, and employment opportunities, critical factors as the nation navigates mounting debt and currency pressures. The inability to maximise oil production carries significant fiscal consequences.
Industry analysts argue that reversing the trend will require sustained reforms, improved security in oil-producing regions, and a more attractive investment climate to entice both indigenous and international operators.
Without decisive action, Nigeria risks falling further behind regional competitors like Angola, which, despite its own challenges, has shown signs of stabilisation and gradual growth.
