Nigeria: Energy Law

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.

Inside Nigeria's gas-flare commercialisation pivot: investability, bankability, enforcement credibility and the gas-to-power opportunity

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.

The Dangote Refinery reportedly received only about five crude cargoes per month, compared to the estimated 13 required to meet optimal domestic demand, while several modular refineries fared even worse. Some modular plants, including OPAC, reportedly received little or no allocation under the DCSO framework or the naira-for-crude arrangement, leading to low-capacity utilisation and intermittent shutdowns

The first quarter of 2026 was significantly shaped by global oil market instability, driven by heightened geopolitical tensions involving the United States and Iran.

In recent years, Nigeria’s power sector has undergone a significant shift, from a centralized, government run monopoly to a more open and market-driven structure.

Following the enactment of the Electricity Act, 2023 (the "Electricity Act"), and the Fifth Alteration to the Constitution of the Federal Republic of Nigeria, 1999, the Nigerian Electricity Supply Industry ("NESI") and ultimately, the electricity sector has undergone significant reform.

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

The decision of the Federal High Court in Eurafric Energy Limited v. Ministry of Petroleum Resources & Ors. in suit number FHC/L/CS/628/2021 (the "Eurafric Case") represents one of the most recent substantive judicial examinations of executive authority under the Petroleum Industry Act, 2021 (as amended) (the "PIA").