Nigeria: Oil, Gas & Electricity

Nigeria's power sector advances through regulatory reforms and financial restructuring. NERC's revised order directs distribution companies to allocate earned revenues toward capital expenditure, while the Federal Government completes a ₦728.9 billion bond issuance to settle legacy debts. Edo State operationalizes its electricity market under state-level regulation, and Nigeria launches a $300 million fund to scale distributed renewable energy investments.

The Nigerian government has introduced a comprehensive tax incentive framework through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishing three distinct production tax credit mechanisms designed to stimulate investment in deep offshore petroleum developments.

TotalEnergies and AMNI have taken the Final Investment Decision on Nigeria's Ima Gas Project, a development 53 years in the making that will supply critical feed gas to Nigeria LNG's Train 7 expansion. Between FID and first gas in 2028, the project faces complex legal obligations spanning financing conditions, gas sales agreements, construction contracts, Nigerian content compliance, host community trusts, flaring regulations, and tax incentives that must all hold up in practice.

Nigeria holds the largest proven natural gas reserves in Africa. In January 2026, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) declared national gas reserves of 215.19 trillion cubic feet as the official reserves position — up from 210.54 trillion cubic feet a year earlier, and comfortably ahead of Algeria and Egypt. Yet gas shortages continue to constrain electricity generation across the country, while the nation simultaneously pursues expanded liquefied natural gas (LNG) export ambitions.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued an official clarification regarding aviation-related charges in the oil and gas sector, specifically addressing the $300 helicopter levy and terminal navigational charges. This regulatory update provides critical guidance for operators and stakeholders navigating compliance requirements in Nigeria's upstream petroleum industry.

Nigeria has introduced a new Tax Remission Order for 2026 targeting deep offshore oil and gas projects, establishing a framework of fiscal incentives designed to stimulate investment in the sector. This regulatory development carries significant implications for both domestic and international investors evaluating opportunities in Nigeria's offshore energy landscape.

Nigeria's power sector sees significant regulatory developments as NERC issues new guidelines for technical audits of transmission infrastructure, publishes a directory of State Electricity Regulatory Commissions to support the transition to state-level regulation, and the Minister of Power establishes an inter-agency committee to facilitate electricity market decentralisation under the Electricity Act 2023.

Nigeria's Federal Government has announced plans to raise ₦729 billion through a Series II bond under the Presidential Power Sector Debt Reduction Programme, building on the successful ₦501 billion Series I issuance earlier in 2026. While these capital market interventions aim to resolve verified legacy liabilities and restore liquidity across the Nigerian Electricity Supply Industry, the underlying question remains whether debt resolution alone can break the cycle of accumulating obligations wi

The Federal High Court's recent decision in HRM King Bubaraye Dakolo v. Shell Petroleum Development Company has reignited debate over whether limitation statutes should bar environmental claims arising from oil spills. This case examines two critical unresolved questions: whether federal or state limitation laws govern petroleum litigation, and whether ongoing oil pollution constitutes a continuing tort that suspends statutory time limits.