Energy And Infrastructure Sector News Update – January 2026

OIL AND GAS SECTOR

Shell Commits $20bn to Bonga South West Deepwater Project

Shell Plc plans to invest up to $20 billion in the Bonga South West deepwater project following a meeting between Shell's Chief Executive Officer, Wael Sawan and the President of the Federal Republic of Nigeria, Bola Tinubu. The project, estimated to hold 820 million barrels of reserves with peak production of 220,000 bpd, includes approximately $10 billion in capital expenditure. President Tinubu approved targeted investment linked incentives and set expectations for a Final Investment Decision. The commitment signals renewed international confidence in Nigeria's deepwater assets and is expected to generate jobs, FX inflows, fabrication activity, and long term government revenues.

NNPC Opens Bidding for Oil and Gas Asset Divestment 

NNPC Limited has opened bidding for stakes in selected oil and gas assets under a portfolio optimisation strategy targeting $30 billion by 2030. The process covers wholly-owned assets and joint ventures with Shell, Chevron, Eni, and TotalEnergies, and is expected to unlock capital for new developments, infrastructure upgrades, and a potential IPO. Oil sector unions have opposed the move, citing concerns over revenue and workers' welfare as government JV stakes may be reduced by 30–35%. 

NMDPRA Projects $30–$50bn Daily Revenue from Midstream Sector 

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has projected that Nigeria must earn between $30 billion and $50 billion daily from the midstream sector to become a global oil and gas hub. NMDPRA CEO Saidu Mohammed made the disclosure during an operational visit to Port Harcourt facilities, describing midstream infrastructure as critical but highly investment intensive. He further stated that, following the ongoing expansions at Indorama and Dangote, Nigeria could join the league of urea exporters by 2028. 

Domestic LPG Supply Hits 87% as Imports Drop

Nigeria's LPG consumption reached 52,800 MT in 2025, with domestic supply accounting for 45,800 MT (87%) and imports making up just 13%, according to NMDPRA. The shift reflects investments in NLNG, Dangote Petrochemical Refinery, and other gas processing plants. However, despite higher domestic production, retail LPG prices remain elevated, due to transportation costs, storage constraints, and distribution inefficiencies, thereby limiting consumer benefits from domestic production growth.

CORAN Urges Conditional Import Licensing

The Crude Oil Refinery Owners Association of Nigeria has called on NMDPRA to issue import licences only as a balancing measure rather than a default practice. CORAN advocated guaranteed crude supply to domestic refineries, enforceable supply mechanisms, and FX alignment to prevent structural disadvantages for local refiners, citing rising petrol imports despite growing local refining capacity.  

Nigeria–China Crude Trade Set to Expand

Nigeria's crude trade with China is positioned to grow following a sharp decline in Venezuelan exports to China due to a U.S. blockade. Analysts estimate February deliveries from Venezuela will drop to 166,000 bpd from 642,000 bpd in 2025. The disruption presents an opportunity for Nigerian crude to gain market share despite domestic production challenges. 

NUPRC Holds Pre-Bid Conference for 50-Block Licensing Round 

The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) hosted its pre-bid conference for the 2025 licensing round, confirming reduced signature bonuses of $3m $7m per block. NUPRC also announced adjustments to pre-first oil fees, introduced new digital permitting workflows, and published service-level timelines for approvals. The round aims to attract $10 billion in new investments across onshore, shallow water, frontier, and deepwater assets.

NNPC Unveils Gas Master Plan Targeting $60bn Investment by 2030 

The Nigerian National Petroleum Company Limited (NNPC Ltd) has unveiled its Gas Master Plan (GMP) 2026, targeting 12 billion standard cubic feet per day of gas production by 2030 and catalyzing over $60 billion in investments. The plan, launched in Abuja on Friday, aims to leverage Nigeria's 210 trillion cubic feet of proven gas reserves to drive industrialization and energy security through enhanced supply to power generation, CNG, LPG, and industrial sectors. Key initiatives include a 20 million LPG cylinder supply program for delivery by 2030. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the plan as a shift from policy formulation to disciplined execution, aligned with  the federal government's Decade of Gas Initiative. 

ELECTRICITY SECTOR

NERC Transfers Gombe Electricity Market to State Regulator 

The Nigerian Electricity Regulatory Commission has transferred regulatory oversight of Gombe State's electricity market to the Gombe State Electricity Regulatory Commission under the Electricity Act 2023. Jos DisCo is required to incorporate a subsidiary within 60 days, with full transition by July 6, 2026. 

Power Minister Pledges Reliable Electricity in 2026 

The Minister of Power, Minister Adebayo Adelabu has assured Nigerians of improved electricity reliability in 2026, citing priorities including grid stability, transmission expansion, DisCo collaboration, industrial electrification, and renewable energy development. 

AEDC Creates Niger and Kogi Distribution Subsidiaries 

Abuja Electricity Distribution Plc has transitioned into a holding company and incorporated Niger and Kogi electricity subsidiaries under state regulatory frameworks. The restructuring reflects decentralised electricity regulation under the Electricity Act 2023. 

DisCos Collect ₦570bn in Q3 2025

The Nigerian Electricity Regulatory Commission reported that DisCos got ₦570.25 billion in Q3 2025, achieving a collection efficiency of 80.7%. Ikeja DisCo recorded the highest efficiency at 100%, while Kaduna had the lowest at 45.7%. During the quarter, a total of 228,614 meters were installed nationwide.

Transgrid Enerco Acquires 60% Stake in Eko DisCo 

Transgrid Enerco Limited has completed a ₦360 billion acquisition of a 60% controlling interest in Eko DisCo. The transaction signals renewed private sector confidence in the electricity distribution segment and is expected to drive infrastructure upgrades and service improvements.

INFRASTRUCTURE

Denmark Commits to Support Nigeria's Renewable Energy and Maritime Development 

Denmark has pledged to partner with Nigeria on renewable energy and maritime development, citing expertise in wind energy and green shipping. The partnership is expected to support port modernisation, clean energy transition, and Nigeria's blue economy agenda. 

MINING SECTOR

NASRDA, EFCC Deploy Satellite Technology to Combat Illegal Mining and Financial Crimes 

The National Space Research and Development Agency (NASRDA) and the Economic and Financial Crimes Commission (EFCC) have executed a Memorandum of Understanding (MOU) to deploy satellite and geospatial technology in fighting illegal mining and financial crimes. Under the terms of the MOU, NASRDA will provide space-based surveillance, geospatial intelligence, spectrum management tools, and asset-tracking devices to support EFCC investigations, particularly in remote areas where illegal mining activities are prevalent. The collaboration is expected to strengthen enforcement against illegal mining, estimated to cost Nigeria approximately $9 billion annually, improve transparency in public sector projects through satellite monitoring, and enhance asset recovery processes through geolocation and digital tagging systems.

Nasarawa Government Mandates Mining Operators to Prioritize Community Development and CSR

Nasarawa State Government has called on mining operators to actively invest in host community welfare beyond license compliance, following the commissioning of community projects in Uke, Karu Local Government Area. The State Commissioner for Environment and Natural Resources Dr. Margaret Elayo highlighted Sawadogo Nig Enterprises Ltd's interventions including forty solar streetlights, ten boreholes, and ₦2 million in medicines for the Primary Health Centre, as an exemplary model. The state is also developing a policy framework to ensure mining companies comply with CSR requirements. The initiative links regulatory support to demonstrated community investment and environmental sustainability compliance. 

FG Commissions Gold Refinery in Lagos, $600m Lithium Plant Nears Completion 

The Federal Government has announced operations at a high-purity gold refining plant in Lagos, while a $600 million lithium processing facility in Nasarawa State nears commissioning, with three additional gold refineries under development nationwide. Solid Minerals Development Minister Dr. Dele Alake disclosed this during a meeting with Saudi Arabia's Minister of Industry and Mineral Resources, Ibrahim Al Khorayef. The operational refinery and lithium plant support Nigeria's shift from raw mineral exports to in-country processing and integration into global clean-energy value chains.

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