Nigeria: Oil, Gas & Electricity

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has declared that petroleum companies operating in free trade zones, export processing zones, and other designated areas remain fully subject to the Petroleum Industry Act (PIA) 2021.

Nigeria's 2025 Petroleum Licensing Round offers 50 oil blocks across onshore, shallow-water, frontier, and deep offshore areas. With pre-qualification complete, bidders must now navigate complex regulatory requirements, consortium structuring, and competitive bid strategies to secure acreage in one of Africa's most significant upstream opportunities.

Nigeria and Ghana's energy and natural resources sectors are transitioning from policy formulation to active implementation, with major infrastructure projects advancing and regulatory frameworks strengthening. As NLNG Train 7 nears completion and the Nigeria-Morocco Gas Pipeline secures funding, both nations are intensifying efforts to monetise resources, expand generation capacity, and attract mining investments while tightening oversight across petroleum, power, and mineral sectors.

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.

Nigeria's 2025 Petroleum Licensing Round offers 50 blocks across the Niger Delta, deep offshore, and frontier basins, targeting USD 10 billion in investment under the Petroleum Industry Act. With nearly 300 applicants competing, the round represents the most ambitious upstream acreage release in Nigeria's post-PIA era, testing the country's reformed regulatory framework at unprecedented scale.

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.

A fuel supplier failed to deliver 2 million litres of Automotive Gas Oil despite receiving ₦705 million upfront payment, leading to litigation that ultimately resulted in a court-enforced settlement.

This paper examines emerging arbitration and dispute trends in the gas sector, the enforcement challenges faced when striving to enforce arbitral awards against state entities and national oil companies, and lessons from landmark international cases.