Energy And Infrastructure Sector News Update June 2026

OIL AND GAS SECTOR

NCDMB Targets Q4 2026 for NOGaPS Operational Launch and CNG Power Plant Installation

The Nigerian Content Development and Monitoring Board (NCDMB) has reaffirmed that the Nigerian Oil and Gas Park Scheme (NOGaPS) in Emeyal-1, Ogbia Local Government Area of Bayelsa State, will become operational by the fourth quarter of 2026. As a key step toward that target, the NCDMB plans to install a 2.5MW Compressed Natural Gas power plant at the facility to provide reliable electricity for industrial operations.

NUPRC to Launch 2026 Oil Licensing Round in Q3 Following Ministerial Approval

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that Nigeria's 2026 oil licensing round will commence in the third quarter of the year following ministerial approval. The Chief Executive Officer, Dr. Oritsemeyiwa Eyesan, disclosed that the commercial bid phase is scheduled for July, with the 2026 round to follow shortly after, reflecting Nigeria's push to run back-to-back licensing rounds to sustain upstream investment momentum

Tinubu Commissions Four (4) Major CNG Infrastructure Projects to Expand Nigeria's Clean Transportation Infrastructure

President Bola Tinubu has commissioned four major Compressed Natural Gas (CNG) infrastructure projects across Lagos, Abuja, and Owerri as part of the Federal Government's efforts to deepen domestic gas utilisation, reduce transportation costs, and accelerate Nigeria's transition to cleaner fuels.

The projects, delivered under the Midstream and Downstream Gas Infrastructure Fund (MDGIF), include the Portland Gas CNG Mother Station and the IBILE Oil and Gas CNG Refuelling Station in Lagos, the Rolling Energy High-Capacity CNG Daughter Booster Station in Abuja, and the FEMADEC CNG Daughter Station and Conversion Centre at the Federal University of Technology, Owerri. The rollout also forms part of broader initiatives to expand vehicle conversion, strengthen refuelling infrastructure, and improve access to financing for CNG adoption across the country.

NLNG Subsidiary Awards Contract for Three New LNG Vessels to Chinese Shipbuilders

Bonny Gas Transport Limited (BGT), a subsidiary of Nigeria LNG Limited (NLNG), has awarded contracts for the construction of three newbuild LNG vessels to Hudong-Zhonghua Shipbuilding (Group) Co. Limited and China Shipbuilding Trading Co. Limited. Each vessel will have a cargo capacity of 174,000 cubic metres and will be fitted with advanced X-DF propulsion technology to improve fuel efficiency and reduce emissions in compliance with global and EU emissions regulations. The vessels, expected to be delivered in 2029, will be chartered by NLNG and managed by NLNG Shipping and Marine Services Limited, forming part of BGT's broader fleet renewal and modernisation programme.

Nigeria Emerges as Major Jet Fuel Supplier to Europe

Nigeria has emerged as one of Europe’s leading jet fuel suppliers, with exports averaging approximately 127,000 barrels per day in June 2026, according to the International Energy Agency (IEA). The development underscores Nigeria’s growing presence in global refined petroleum markets, driven largely by increased output from the Dangote Refinery, which was recently recognised as the world’s largest exporter of jet fuel. Nigeria’s exports, alongside higher refinery output in the United States and Europe, have helped ease jet fuel supply concerns ahead of the peak summer travel season.

Nigeria Exceeds OPEC Production Quota for First Time in 2026

Nigeria exceeded its OPEC crude oil production quota for the first time in 2026, with crude output averaging 1.53 million barrels per day in May, surpassing the country's quota of 1.5 million barrels per day. The total output reached approximately 1.7 million barrels per day combined with condensate production, representing the highest crude production level recorded in 15 months. The increase has been attributed to improved operational stability, enhanced pipeline security, and the contribution of both established and newly introduced crude grades to Nigeria’s production portfolio.

NLNG Train 7 Reaches 90% Completion Ahead of 2027 Commissioning

Nigeria LNG Limited (NLNG) has announced that its Train 7 project is 90% complete, with precommissioning activities already underway ahead of its planned commissioning in 2027. Once operational, the project is expected to increase NLNG's production capacity by approximately 35%, from 22 million tonnes per annum to 30 million tonnes per annum. During a visit to the Nigerian Content Development and Monitoring Board (NCDMB), both organisations reaffirmed their commitment to advancing local content development, with discussions also focusing on support for the Brass Shipyard drydock facility under the Train 7 capacity development programme.    

ELECTRICITY SECTOR

State Electricity Regulators Reject Proposed Electricity Act Amendment Bill 2026

State Electricity Regulatory Commissions (SERCs) from sixteen (16) states have jointly rejected the proposed Electricity Act Amendment Bill 2026 on the grounds that the legislation seeks to reverse the devolution of powers to states and that such move could plunge the power sector back into the regulatory gridlock that stalled progress for two decades. In a memorandum dated 26^th May, 2026, the SERCs stated that the bill directly contradicted the 5^th Alteration of the 1999 Constitution of the Federal Republic of Nigeria, as amended and the Electricity Act 2023, which devolved legislative, governance, and regulatory authority over intrastate electricity markets to states.

NERC Approves Compensation Scheme for Band A Customers Affected by Generation Shortfalls

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation scheme for eligible Band A electricity customers affected by generation shortfalls between February and March 2026. The shortfalls, attributed to inadequate gas supply and vandalism of critical infrastructure, prevented distribution companies from meeting committed service levels. Under the scheme, customers on feeders that recorded less than 18 hours of daily supply will receive compensation equivalent to 20% of their approved energy cap, delivered through token credits for prepaid customers and bill adjustments for postpaid customers. NERC also barred DisCos from offsetting compensation credits against existing customer debts.

NERC Commences Implementation of Net Billing Regulations 2026 to Boost Renewable Energy Adoption

The Nigerian Electricity Regulatory Commission (NERC) has commenced implementation of the Net Billing Regulations 2026, establishing a framework that enables eligible electricity customers to generate electricity from renewable energy sources, primarily solar systems and export surplus energy to the distribution network. The regulations aim to promote renewable energy adoption, enhance energy security, encourage private sector participation in distributed generation, and reduce greenhouse gas emissions.

Mission 300 Connects 50 Million Africans to Electricity, Nigeria Among Key Beneficiaries

The World Bank and African Development Bank (AfDB) have announced that more than 50 million people across Africa have gained access to electricity under Mission 300, a continent -wide initiative aimed at connecting 300 million Africans to power by 2030. Nigeria is among the programme’s major beneficiaries, with approximately 4.6 million people already connected and plans underway to extend electricity access to an additional 17.5 million Nigerians. The milestone marks significant progress in addressing energy access challenges across the continent, where hundreds of millions still lack reliable electricity.    

MINING SECTOR  

Nigeria's Solid Minerals Sector Attracts $3 Billion in Investment

Nigeria's solid minerals sector has attracted approximately $3 billion in investment inflows over the past three years, spanning lithium, gold, and other strategic minerals. President Tinubu urged African countries to end the exploitation of the continent's mineral resources and invest in local processing and industrial development, warning that exporting raw materials without value addition leaves Africa's economies exposed.

UNCTAD Projects Sharp Growth in Global Lithium Demand by 2040  

Global demand for lithium is projected to rise by 353% between 2024 and 2040, while graphite demand is expected to grow by 131%, according to a recent UNCTAD report. The findings carry significant implications for Nigeria, where Chinese companies have already invested over $1.3 billion in lithium processing since 2023. UNCTAD also noted a growing trend among resource-rich countries to promote domestic processing through export restrictions and local value-addition policies.

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