Nigeria: Energy Law

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.

The Nigerian energy sector, particularly the oil and gas industry, is governed by a complex web of statutory, contractual, and institutional frameworks regulating the exploration, production, transportation, and commercialization of petroleum resources. Owing to the technical complexity of operations, the multiplicity of stakeholders, including the State, multinational oil companies, indigenous operators, regulators, and host communities, as well as the enormous economic interests involved, disputes are an inevitable feature of the sector.

The Conversion and Renewal (Licences and Leases) Regulations 2026 introduce significant reforms to Nigeria's energy sector licensing framework. This analysis examines the regulatory changes affecting licence holders and lease operators, exploring how the new conversion regime impacts existing agreements and future applications. Understanding these modifications is crucial for stakeholders navigating the evolving legal landscape of energy licences and leases.

Nigeria's power sector sees significant regulatory updates as NERC issues the Mini-Grid Regulations 2026, establishing comprehensive frameworks for capacity thresholds, tariff design, grid arrival protocols, and exclusivity arrangements. Concurrently, new transmission loss reporting requirements aim to enhance grid transparency and operational efficiency across regional networks.

The ongoing US–Iran war dynamics, alongside broader Middle East tensions, including Israel–Iran hostilities, have intensified global concern over a potential Strait of Hormuz crisis.

Nigeria’s mining sector entered what seems to be a critical inflection point in 2025, with the Federal Government intensifying efforts to position the sector as a credible contributor to growing its non-oil revenues. The year witnessed improved policy implementation and more assertive regulatory enforcement.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), pursuant to Section 167, the Third and Fourth Schedule of the Petroleum Industry Act...

Grid electricity supply remained constrained throughout 2025. Despite installed generation capacity in excess of 13,000 MW, according to NERC data, average daily generation remained under 5000 MWh/h in 2025. This significant gap between installed capacity and delivered power continued to be driven by gas supply constraints and transmission bottlenecks.