Nigeria's oil industry showed no signs of growth in November, with the active rig count holding steady at a level last seen at the start of the year. This stagnation comes even as fellow members of the Organisation of Petroleum Exporting Countries (OPEC) significantly ramped up their drilling operations.
Flatlining Activity Amid OPEC-Wide Growth
According to the latest international rig count data from energy services giant Baker Hughes, Nigeria operated 41 rigs in November 2025. This figure represents a slight dip from the 43 rigs active in October and is identical to the count from November 2024. This neutral performance stands in stark contrast to the broader OPEC bloc.
The data reveals that other OPEC nations collectively increased their drilling activity to 1,271 rigs last month. This marks a substantial seven per cent jump compared to the previous year, highlighting a clear divergence in strategy and capability within the cartel.
Root Causes of Nigeria's Stagnation
Analysts point to a confluence of deep-seated structural issues crippling Africa's largest crude producer. The stagnant rig count is a symptom of persistent challenges that have plagued the sector for years.
Underinvestment remains a primary concern, exacerbated by security problems in the Niger Delta, regulatory delays, and ageing infrastructure. These factors collectively limit production capacity. Furthermore, rampant crude theft and the slow implementation of the landmark Petroleum Industry Act (PIA) continue to deter both local and international investors, starving the industry of crucial capital.
Global Context and Economic Fallout
While Nigeria's count flatlined, other major producers were busy. Saudi Arabia led OPEC's expansion with 232 active rigs. The United Arab Emirates followed with 71, Kuwait with 40, Iran maintained 117 despite sanctions, and Iraq operated 62. Notably, Nigeria has failed to align its rig activity with its OPEC production quota, leaving significant potential revenue on the table.
Globally, the rig count reached 1,883 in November, up by 12 units year-on-year. Non-OPEC leaders included the United States (549 rigs), China (835), Russia (320), and Canada (193). This growth reflects cautious optimism, even amid geopolitical tensions and energy transition pressures.
For Nigeria, the economic implications are severe. Every idle rig translates to lost barrels of oil, forfeited revenue, and missed employment opportunities. This stagnation is a critical fiscal setback for a nation grappling with mounting debt and currency instability. Industry experts warn that without decisive action—including sustained reforms, improved security, and a more attractive investment climate—Nigeria risks falling further behind regional competitors like Angola.
