Nigeria: Energy Law

The statutory basis of the 6th August 2026 executive order, what it replaces, what it preserves, where discretion still sits, and why it matters to investors, lenders, and project sponsors.

On 6 August 2026, President Bola Ahmed Tinubu signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, consolidating fiscal incentive measures into a single framework for deep offshore developments. The Order introduces a Supplementary Production Tax Credit and a Profit Oil Reset for qualifying greenfield projects, requiring approval by the Nigeria Revenue Service and compliance with Nigerian content requirements.

In March 2026, a high-tension cable fell onto lower-voltage lines supplying homes in Manchok, Kaura Local Government Area of Kaduna State. The incident resulted in the deaths of three individuals, including a toddler and a 10-year-old, with three others sustaining injuries . In August 2025, a high tension power line snapped and fell directly on a point of sale (PoS) operator in Awka South Local Government Area of Anambra State, while he stood outside his business premises.

The second quarter of 2026 witnessed significant regulatory developments across Nigeria’s energy sector. This edition of the Energy Law Digest covers key developments in upstream petroleum, domestic crude supply obligations, gas sector financing, electricity sector reforms, and energy transition governance.

Nigeria has confirmed world-class mineral deposits including lithium reserves estimated at 3.3 million tonnes near Abuja, but a critical legal reality complicates extraction: under Nigerian law, minerals belong to the Federal Government regardless of land ownership. This creates a complex regulatory landscape where investors must navigate federal mineral rights, state surface rights, community development agreements, and a tiered licensing system that has already seen over 3,000 titles revoked for non-compl

Nigeria's power sector advances with new Net Billing Regulations 2026 enabling distributed renewable energy integration, while NERC mandates special compensation for Band A customers affected by grid generation constraints. These developments strengthen regulatory oversight, enhance consumer protection, and facilitate the structured expansion of distributed energy resources within the Nigerian Electricity Supply Industry.

The Nigerian Upstream Petroleum Regulatory Commission (the “Commission”) previously issued the Upstream Petroleum Fees and Rents (Temporary)...

Nigeria and South Africa remain two of Africa’s most significant energy markets, with substantial natural resources, sophisticated financial ecosystems, and growing ambitions to lead the continent’s evolving energy economy. However, despite their strategic importance, the full potential for cross-border energy investment and collaboration between both jurisdictions remains largely untapped.

Nigeria’s electricity sector has remained the subject of persistent debate, reform efforts, and unfulfilled promises. Successive administrations since the 1990s have pledged comprehensive transformation of the industry. While some achieved limited structural reforms, many produced little beyond policy papers and committees. The consequence has been a power sector that continues to underperform, with Nigeria generating less electricity per capita than several of its African counterparts.