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The third quarter of 2025 marked a defining period for Nigeria's energy sector, underscored by regulatory assertiveness, upstream transactions, and progress in the energy transition. Most notably, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approved TotalEnergies' $510 million divestment of its 12.5 per cent stake in the Bonga field to Shell and Agip, while revoking its earlier approval of an $860 million deal with Chappal Energies for noncompliance. Nigeria also signed a production sharing contract with TotalEnergies and Sapetro for two offshore blocks awarded in 2024 under the Petroleum Industry Act, with a strong focus on gas development.
Earlier in the quarter, crude oil production rose nearly 10 per cent year on year in July, reinforcing signs of recovery in upstream operations. In the power sector, the Nigerian Electricity Regulatory Commission (NERC) advanced key reforms to strengthen efficiency and grid stability, while the National Assembly took a significant legislative step with the Senate's passage of the Electricity Act Amendment Bill 2025. The bill introduces far-reaching reforms, including criminalising electricity infrastructure vandalism, clarifying the transfer of regulatory powers from NERC to state governments, enhancing the operationalisation of the Electricity Consumer Assistance Fund, and strengthening institutional oversight and penalties, all of which are expected to shape the future trajectory of the sector.
In the renewables sector, a major milestone was the release of NERC's Draft Net Billing Regulations 2025. The framework, now open for stakeholder input, allows prosumers with renewable installations to export excess power to the grid under credit-based billing. This represents a significant step toward integrating distributed renewable energy into the national supply mix and advancing Nigeria's clean energy agenda.
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