Nigeria: Energy and Natural Resources

Nigeria's power sector faces critical gas supply challenges despite vast reserves, with Generation Companies struggling under mounting debts, uncompetitive pricing, and persistent infrastructure issues.

The current gas projects now face strict carbon regulations which make their operations more complex than their original hydrocarbon work.

This update provides an overview of some recent regulatory and market developments in Nigeria’s power sector, including the decentralisation of regulatory oversight to state regulators, emerging and proposed frameworks for distributed generation and interconnected mini-grids, developments under the Nigerian Bulk Electricity Trading Plc (“NBET”) bond programme, and ongoing metering interventions.

The Federal Government has introduced significant fiscal reforms in the mining sector with the enactment of the Nigeria Tax Act, 2025 (NTA) and the Nigeria Tax Administration Act, 2025 (NTAA). These new laws represent a definitive departure from the previous fiscal regime, which was primarily governed by the Nigerian Minerals and Mining Act, 2007 (the "Mining Act") and the Companies Income Tax Act, 1977 (as amended) (CITA).

Mining has become one of the key drivers of Africa's economic growth and development.

The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that it is in advanced discussions with a Chinese petrochemical company over an equity partnership to revive one of its underperforming refineries.

Nigeria's power sector faces critical gas supply challenges despite vast reserves, with Generation Companies struggling under mounting debts, uncompetitive pricing, and persistent infrastructure issues.

The current gas projects now face strict carbon regulations which make their operations more complex than their original hydrocarbon work.

When a massive FPSO vessel was abandoned at Samsung Heavy Industries Nigeria's quay, blocking operations and causing significant commercial losses, swift legal action was required. Our maritime litigation team successfully invoked admiralty jurisdiction to secure a landmark court order directing the Admiralty Marshal to arrest and physically relocate one of the largest offshore assets ever arrested in Nigeria's legal history.

Nigeria's power sector faces critical gas supply challenges despite vast reserves, with Generation Companies struggling under mounting debts, uncompetitive pricing, and persistent infrastructure issues.

This update provides an overview of some recent regulatory and market developments in Nigeria’s power sector, including the decentralisation of regulatory oversight to state regulators, emerging and proposed frameworks for distributed generation and interconnected mini-grids, developments under the Nigerian Bulk Electricity Trading Plc (“NBET”) bond programme, and ongoing metering interventions.

Nigeria's energy sector experienced significant turbulence in Q1 2026 as geopolitical conflict in the Middle East drove crude oil prices from $74 to over $110 per barrel, forcing domestic petrol prices to surge above N1,175 per litre. The quarter revealed both the stabilizing potential of domestic refining capacity and persistent vulnerabilities across upstream production, power grid infrastructure, and downstream fuel markets.