TEMPLARS Transcripts | Energy & Natural Resources: 2025 Year In Review, 2026 Outlook

GHANA

Oil and Gas

In 2025, Ghana's oil and gas sector, largely fueled by the change in government after the 2024 election results, experienced strategic reforms and increased investment aimed at addressing the decline in production and improving energy security.

TEMPLARS Ghana notes the following that shaped the sector in 2025:

• GNPC Strategic Sector Reset: National Oil Company, Ghana National Petroleum Corporation (GNPC), instituted a new upstream strategy aimed at revitalizing the sector and reversing the decline in Ghana's oil output which had plummeted from a high of 195,750 barrels per day in 2019 to approximately 110,500 barrels per day recently. See our June 2025 Digest for details.
• Tema Oil Refinery (TOR) Resumed Operations: TOR resumed crude oil refining operations in December 2025, following its shutdown in 2021. See our July 2025 Digest for details.
• ENI and Offshore Cape Three Points (OCTP) Partners Progress with I.5 Billion OCTP Project: Eni, together with its OCTP partners, Vitol and GNPC, signed a Memorandum of Intent with the Government of Ghana to evaluate a comprehensive and integrated $1.5 billion investment plan, focused on the potential development of the Eban-Akoma field in Cape Three Points Block 4. See our November Energy Digest for details.
• Ghana Withdrew ENI-Springfield Unitisation Directives: In March 2025, Ghana announced the reversal of its 2020 Unitisation Directives imposed on Eni Ghana Exploration & Production Ltd and Springfield Exploration & Production Ltd, regarding the Afina – 1X Discovery and the Sankofa Cenomanian Oil Fields. This decision followed an arbitration ruling on 8 July 2024, in the ENI & Vitol v. Ghana & GNPC, which found the unitisation unlawful and in breach of the petroleum agreement in respect of the OCTP Block. See our April 2025 Digest for details.

POWER

In 2025, the power sector in Ghana was characterised by governmental policy reforms and extensive financial restructuring measures aimed at achieving increased power generation at the national level, sustainable financial planning, and reduced legacy debt.

We found the following of interest: (a) the systemic renegotiation of contractual terms of power purchase agreements with existing Independent Power Producers (IPPs), (b) the implementation of the Ghana Energy Sector Recovery Programme to, among others, strengthen the cash waterfall mechanism in the sector, and (c) the enactment of the Energy Commission (Planning and Competitive Procurement of Additional Electricity Generation Capacity) Regulations, 2025 (L.I. 2508) to enable competitive procurement for power producers.

In addition to extensive financial restructuring, the Electricity Company of Ghana (ECG) underwent key events within the year which reshaped privatisation efforts in the monopolised power distribution sector. Notably, the privatisation of the ECG was stalled due to intense opposition from labour unions in favour of private sector involvement in other areas of the power supply.

Despite intensive government restructuring, IPPs, investors and lenders continued to view investments in Ghana's power sector favourably and directed further funds into power projects. Particularly, IPPs heavily invested in power plants to supplement power generation with Aksa Energy, achieving partial production at its 350 MW Anwomaso power plant and completing its dual-fuel conversion project at its 379 MW power plant in Tema.

TEMPLARS advised Bayerische Landesbank and Türkiye İş Bankası Anonim Şirketi on its credit facility to Aksa Energy for financing the abovementioned power projects.

Other developments in Ghana's power sector:

• Government Enacted Legislative Instrument to Mandate Competitive Power Procurement: In 2025, Ghana enacted and gazetted the Energy Commission (Planning and Competitive Procurement of Additional Electricity Generation Capacity) Regulations, 2025 (L.I. 2508) which significantly amended the procurement process for power generation services, IPPs, and the negotiation of power purchase agreements. The LI 2508 mandates all IPPs and power purchase agreements to be concluded through competitive bidding to address inefficiencies, improve transparency, and ensure value for money in energy contracts.
• TUC and PUWU Feud Against Privatisation of ECG: The Trade Union Congress (TUC) and Public Utility Workers' Union (PUWU) strongly opposed government plans to privatize the ECG. They cited the failed Power Distribution Service deal in 2019 and argued that ECG's challenges stemmed from political interference, poor procurement, and systemic inefficiencies, not public ownership. See our April 2025 Digest for details.
• ECG Landmark Arbitration Case Against PDS in London: In November 2025, ECG won a high-profile international arbitration against Power Distribution Services Ghana LTD (PDS) in London, United Kingdom, concluding a four (4)-year dispute.
  
  The tribunal ruled that ECG was legally justified in terminating its 2018 concession agreement with PDS since the payment guarantees provided by PDS were fraudulent and invalid. See our April 2025 Digest for details.

RENEWABLE ENERGY AND ENERGY TRANSITION

In 2025, Ghana advanced its energy transition agenda through a combination of climate focused financing and regional energy cooperation initiatives:

• Ghana Unveiled Ambitious Renewable Energy Adoption Plan: Ghana announced a comprehensive plan to boost its renewable energy adoption and position the country as a leader in Africa's green economy. The plan envisaged the deployment of 12,000 net-metered solar PV systems for homes, construction of 35 mini-grids for 47 island communities, and distributing 1,450 solar home systems to off grid households and institutions. See our August Energy Digest for details.
• Ghana Secured $1 Billion for Climate Financing: Ghana secured approximately US$1 billion in medium-term financing (2024 2030) to accelerate its energy transition projects. This funding, anchored in the National Energy Transition Framework, is expected to support renewable energy expansion to at least 1,400 MW, smart solar lighting, and electric vehicle charging infrastructure. Read more from our publication here.

NIGERIA Oil and Gas

Notable developments included Nigeria's first flare gas digital infrastructure project for the utilisation of flare gas to power multiple data centers on the Dawcon Green Flare Gas Project¹; Energy& LLP's strategic investment in Falcon Corporation;² gas pipeline infrastructure development on the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline Project;³ and significant progress with the Nigeria–Morocco Gas Pipeline Project;⁴ the execution of a Memorandum of Understanding for the mobilisation of up to US$500 million over 4 years for midstream and downstream gas projects between Afrexim Bank and MDGIF;⁵ launch of Nigeria's first Gas Clearing House and Settlement Authorisation Platform by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), based on the Gas Trading and Settlement Regulations in 2023;⁶ partnership between MDGIF and Endurance Group to deploy up to five hundred (500) CNG refueling stations nationwide⁷.

Commercial Framework for Approving Field Development Plans, Annual Work Programmes, and Status Reports: In June 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) issued the Nigerian Upstream Petroleum (Commercial) Regulations, 2025 (the "Commercial Regulations") to establish a framework for the regulation and approval of the commercial aspects of upstream petroleum operations. Key provisions are examined in our article here.

• Advanced Cargo Declaration System by NUPRC: In June 2025, the NUPRC issued the Guidelines for the Operationalisation of the Advance Cargo Declaration Regulation, 2025, which provide for the Advanced Cargo Declaration (ACD) system, and mandates all crude oil and petroleum product exporters to submit detailed shipment information, prior to cargo departure from Nigeria. See our July 2025 Digest for details.
• Acceleration in Crude Oil Refining Activities: The NMDPRA issued multiple Licences to Establish and Licences to Construct for the following projects: Eghudu Refinery Limited (100,000 barrels per day), MB Refinery & Petrochemicals (30,000 barrels per day) and HIS Refining & Petrochemical (10,000 barrels per day), collectively adding approximately 140,000 barrels per day of potential refining capacity. See our April 2025 Digest for details.
• New Regulatory Leadership at NMDPRA and NUPRC: In December 2025, following the resignations of the Authority Chief Executive (ACE) of the NMDPRA and the Commission Chief Executive (CCE) of the NUPRC, new Chief Executives were appointed for both regulators. Saidu Mohammed for the NMDPRA and Oritsemeyiwa Eyesan for the NUPRC.

POWER

Some significant developments we saw in 2025:

• Nigerian Electricity Regulatory Commission (NERC) Transfer of Regulatory Oversight to State Regulatory Authorities: Throughout 2025, the implementation of the decentralized framework established under the Electricity Act, 2023 (EA) was in full swing, with several States enacting their local electricity laws to operationalize their state electricity markets. This development was reported in our November 2025 Digest.
  
  Particularly for Lagos State, in June 2025, the Lagos State Electricity Regulatory Commission ("LASERC") issued Order No. LASERC ORDER/001/2025, which amongst other things, announced the immediate commencement of LASERC's regulatory oversight over the Lagos Market and mandated that all existing electricity-related activities within Lagos State must immediately apply to be licensed by LASERC, irrespective of any permits or licences previously issued by other regulators. See details of this development and its effect on existing and potential investors in Lagos in our article here.
  
  
• NERC Order on the Delineation of Assets and Liabilities of Distribution Licensees: Following the structural and legal reforms introduced by the Electricity Act, 2023 (the "EA'), in March 2025, the NERC issued an Order on the Delineation of Assets and Liabilities of Distribution Licensee (NERC/2025/028), which provides a framework for the delineation of assets and liabilities of successor Distribution Companies ("HoldCos") to set up their subsidiary companies (SubCos), in compliance with the provisions of the EA.
• National Integrated Electricity Policy (NIEP) Adoption: In May 2025, the Nigerian Government approved the National Integrated Electricity Policy (NIEP) replacing the National Electric Power Policy of 2001. The NIEP serves as Nigeria's comprehensive framework for addressing inefficiencies in the electricity sector and advancing sustainable energy development. See our June 2025 Digest for details.
• Reduction in Electricity Subsidies following Tariff Adjustment: In April 2025, the Federal Ministry of Power ("FMP") announced the reduction electricity subsidies by about 35%, following targeted tariff adjustments under the Multi Year Tariff Order (MYTO). See our September 2025 Digest for details.
• Transmission Financing Reform: In May 2025, NERC issued a landmark order that formalized the Order on Performance Improvement Plan for the Transmission Company of Nigeria (TCN) and Nigerian Independent System Operator (NISO), to accelerate investment in critical transmission infrastructure and reduce reliance on traditional budgetary appropriations, through the integration of the Transmission Infrastructure Fund (TIF) into the broader PIP implementation framework covering 2025 2027. See our December 2025 Digest for details.
• US$328.8 Million Financing from China's CMEC to Boost Nigeria's Power Supply: In May 2025, Nigeria signed a US$328.8 million Engineering, Procurement, Construction, and Financing (EPC+F) agreement with China Machinery Engineering Corporation, aimed at upgrading Nigeria's electricity transmission, as part of Phase 1 of the Presidential Power Initiative (PPI). See our May 2025 Digest for details.
• Commencement of Phase II of 12,000MW Siemens Power Project: In September 2025, Nigeria launched Phase II of the PPI, targeting a 12,000MW transmission system upgrade. See our September 2025 Digest for details.
• Phased Implementation of the ₦4 trillion Bond to Clear GenCos' Debts: To resolve the chronic liquidity crisis in the Nigerian Electricity Supply Industry, Nigeria approved a ₦4 trillion (approximately US$2.61 billion) power sector bond program to clear legacy debts (2015 2024) owed to Generation Companies (GenCos) and Gas Suppliers. See our November 2025 Digest.
• Historic WAPP Synchronisation by the Nigerian Independent System Operator: In November 2025, the NISO, working with the West African Power Pool Information and Coordination Centre (WAPP-ICC) successfully conducted a synchronisation test linking Nigeria's national grid with, parts of Niger Republic, Benin and Togo (WAPP Area 1) and the rest of the regional grid (Areas 2 & 3), advancing the operational unification of the West African electricity network. See our November 2025 Digest for details.
• Lagos Secured €120 Million Facility for Epe Waste-to-Energy Project: in December, the Lagos State Government secured a €120 million financing facility from the Dutch Development Bank to develop a waste-to energy plant at the decommissioned Epe landfill, which will process approximately 3,000 tonnes of solid waste per day and supply electricity to surrounding communities. See our December 2025 Digest for details.

RENEWABLE ENERGY AND ENERGY TRANSITION

In 2025, Nigeria's renewable energy and energy transition initiatives advanced steadily, reflecting strengthened policy support, increased private sector investment, and a strategic emphasis on decentralized energy solutions. Some milestones we saw in 2025:

• Rural Electrification Agency (REA)'s US$1.6 Billion Pipeline to Scale Off-Grid Renewable Energy Projects: In August 2025, the REA mobilized a US$1.6 billion funding pipeline designed to accelerate off-grid renewable energy development across Nigeria. This capital mix includes multilateral financing, climate funds, and public-private partnerships, with significant contributions expected from Japan International Corporation Agency and the U.S. Department of Justice via repatriated funds. This was reported in our August 2025 Digest.
• Nigeria Unveils $500m Climate Investment Platform: In June 2025, Nigeria unveiled the Nigerian Climate Investment Platform, an initiative designed to mobilise up to US$500 million in climate finance for infrastructure and adaptation projects. This was reported in our June 2025 Digest.
• Nigeria's Hydrogen Export Roadmap for 2060: In July 2025, Nigeria unveiled an ambitious roadmap to become a global leader in green hydrogen production, targeting $50 billion in export revenue and an annual output of four million tonnes of green ammonia by 2060. We reported more on this in our August 2025 Digest.
• Lagos Government Unveiled Africa's First Subnational Carbon Exchange: The Lagos State Government unveiled Africa's first subnational carbon exchange, making it the second in the World after California, USA. This was reported in our April 2025 Digest.
• Nigerian Distributed Renewable Energy Fund Targets $500 Million Investment: The Nigerian government, in collaboration with the Nigerian Sovereign Investment Authority (NSIA) and the United Nations' Sustainable Energy for All (SEforALL), set a US$500 million target for a fund dedicated to local renewable energy developers. Managed by the Africa50 investment platform (an infrastructure investment platform established by the African Development Bank), the fund focuses on expanding energy access through solar home systems and mini-grids in rural areas. See our April 2025 Digest.
• US$500 Million Investment Agreement between Katsina State Government and GENESIS Energy: In May 2025, the Katsina State Government signed a US$500 million strategic partnership with GENESIS Energy Holding (a UK based Pan-African clean energy infrastructure development company). The agreement focuses on the development, financing, and maintenance of clean energy infrastructure to accelerate industrial and socio-economic growth within the state. This strategic partnership was analyzed in our May 2025 Digest.
• Kaduna Electric Launches 100MW Solar -BESS Project: In June 2025, Kaduna Electric signed a MOU with J-Marine Logistics Limited and ASI Engineering Limited to develop a 100MW solar project with a battery energy storage system (BESS) to enhance grid stability and reliability. The project aims to serve and boost electricity supply in the states of Kaduna (60 MW), Sokoto (20 MW), Zamfara and Kebbi (10 MW). This was reported in our June 2025 Digest.
• US$70M IFC Grant at the Africa Energy Summit: During the Mission 300 Africa Energy Summit held in Dar es Salaam, Tanzania, Nigeria secured a US$70 million grant from the International Finance Corporation (IFC).
  
  Part of a US$1 billion facility backed by the Rockefeller Foundation and the African Development Bank, this funding aims to bridge the energy gap for eighty-five (85) million underserved citizens by scaling decentralized solar powered grids. This was reported in our April 2025 Digest.

• REA and FCMB ₦100 Billion Loan Facility for Mini-Grids: In June 2025, the REA and First City Monument Bank ("FCMB") established a ₦100 billion (approximately US$69 million) loan facility to finance renewable mini-grid projects across Nigeria. We reported more on this in our June 2025 Digest.
• Draft NERC Order on Net Billing Regulations for Distributed Energy: In September 2025, NERC circulated the draft Net-Billing Regulations (the "Regulation") for stakeholder engagement. The Regulation establishes a standardized framework allowing electricity consumers with renewable energy systems to export surplus power to the grid and receive compensation via credits against their electricity bills.

Footnotes

1. TEMPLARS advised on this transaction, which was reported in our June 2025 Digest.

2. TEMPLARS provided full transactional and regulatory support to Energy & LLP.

3. This development was previously analyzed in our May 2025 Digest.

4. Reported in our August 2025 Digest.

5. This development was covered in our May 2025 Digest.

6. The Regulation was examined in our article here.

7. This was highlighted in our December 2025 Digest.

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