Nigeria has dramatically reduced the time required to approve oil well permits from several weeks to just a few hours, as the country moves to take advantage of strong global crude prices hovering near $100 per barrel.
The reform, driven by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), marks a major shift in regulatory approach—from slow, process-heavy oversight to a faster, production-focused strategy aimed at unlocking output.
According to the regulator, approvals are now being fast-tracked for activities capable of increasing production, including well re-entry, barging, and crude evacuation, areas that have historically constrained Nigeria’s oil output.
The urgency behind the move is clear. Nigeria’s production dropped to 1.31 million barrels per day in February 2026, its lowest level in 17 months, following maintenance shutdowns at key facilities, including one operated by Shell.
To reverse the decline, regulators are prioritising the revival of dormant wells, seen as a quicker and more cost-effective alternative to new drilling. While new exploration projects can take years and require billions of dollars, inactive wells with proven reserves can be brought back online within weeks once approvals are secured.
Previously, the approval process alone could take between two to six weeks. Under the new regime, permits are now issued within two to four hours, significantly accelerating timelines.
The initiative is already yielding results, particularly among indigenous operators. Seplat Energy Plc has restored 49 idle wells to production following its acquisition of onshore and shallow-water assets from ExxonMobil, boosting output by an estimated 48,600 barrels per day.
The company plans to revive an additional 50 wells in 2026, although it has cautioned that output gains per well may decline as the pool of dormant assets shrinks.
The regulator had earlier approved about 500 permits for dormant well reactivation between late 2025 and early 2026, underscoring the scale of the intervention.
With Nigeria targeting 1.84 million barrels per day in production, the fast-track permit regime is seen as a critical lever to close the gap, turning idle assets into immediate revenue at a time of favourable oil prices.
The move signals a broader policy pivot: from regulatory bottlenecks to production acceleration, as Africa’s largest oil producer races to maximise value from its existing reserves.
