Nigeria

Nigeria’s Climate Change Act 2021 sets an ambitious target of achieving net-zero greenhouse gas (GHG”) emissions between 2050-2070 and mandates the development of national climate change action plans. Nigeria’s energy sector is the main contributor to green-house gas emissions, accounting for 60% of emissions in 2018, from residential consumption, transportation, electricity generation and oil and gas. Agriculture, forestry, and land use contributes an estimated 25% of GHG emissions, waste contributes 9%, and industrial processes and product use contributes 6% of emissions.

To transition from GHG emissions heavy activity, particularly in the energy sector, Nigeria’s renewable energy potential can be increasingly harnessed using solar, hydropower, wind and biomass solutions. As of 2022, solar contributed about 3% to Nigeria’s energy supply. With solar radiation averaging at 19.8 MJm2/day and 6.25 hours of sunshine on average per day, it is estimated that 427GW of photovoltaic and concentrated solar electricity can be produced in Nigeria. Total installed capacity of hydropower in Nigeria was at 2,111MW in 2022, and it is estimated that 3.5GW of exploitable capacity can be harnessed from the country’s multitude of river systems. Biofuel and waste can also be increasingly exploited to establish more natural resource powered electrification solutions as has been achieved through a biomass mini-grid project in Ebonyi State. While Nigeria’s wind energy potential is modest compared to other technologies, wind power projects can also be developed in the coastal region and northern region of the country with respectable wind speeds (2.0 m/s and 4.0 m/s at heights of 30m respectively) to diversify the energy mix.

Nigeria’s legal and regulatory framework is key to the achievement of the earlier mentioned goals. The Constitution of the Federal Republic of Nigeria 1999 (as amended) (“Nigerian Constitution”) makes provision, in Section 20, for the protection of the environment for the benefit of present and future generations, underlying the importance of sustainability in the exploration of the environment. Chapter IV of the Nigerian Constitution grants a fundamental right to life, clean water, and a healthy environment, and Section 4(4) and 7(b) of the Nigerian Constitution empower Nigeria’s National Assembly and State Houses of Assembly, respectively, to make laws for the management of environmental pollution and control of natural resources, creating the foundation on which other existing legislative frameworks of Nigerian environmental laws are layered.

Beyond setting the country’s net zero target and mandating the development of climate change action plans, the Climate Change Act 2021 also outlines specific strategies and measures for reducing emissions across various sectors. The Environmental Impact Assessment Act 1992 generally regulates the conduct of environmental impact assessments on certain public or private projects. The National Environmental Standards and Regulations Enforcement Agency (Establishment) Act (2007) establishes Nigeria’s primary environmental enforcement agency and supervises the implementation of environmental standards and regulations in line with the broader efforts towards achieving net-zero goals. The Nigerian Minerals and Mining Act regulates the exploration and exploitation of solid minerals in Nigeria. National Oil Spill Detection and Response Agency (Establishment) Act establishes the agency responsible for detecting and responding to all oil spillages in Nigeria.

The Petroleum Industry Act 2021 is Nigeria's primary oil and gas exploration law, provisions of which impact on matters related to the climate and environmental protection within the Nigerian oil and gas sector. The Electricity Act 2023 provides for regulatory collaboration for the development of electricity generation through clean energy resources and establishes a legislative basis for potential solutions such as carbon trading to promote the exploitation of renewable energy sources. The Electricity Act also provides for the implementation of available tax reliefs and other fiscal incentives for investment in renewable energy development.

These laws and their resulting regulations and guidelines are further addressed in this chapter, as they contribute to the implementation of mitigation and adaptation projects in Nigeria to achieve the country’s net-zero target. A notable mitigation project is Nigeria’s Rural Electrification Agency’s allocation of $550 million for mini-grid and solar PV deployments and a separate NGN140 billion aimed at mini-grid developers and solar systems distributors between 2015 and 2022.  So far, a report by Nigeria SE4All indicates that 113 mini grids are registered with the Federal Ministry of Power, with about 145 communities already connected in Nigeria. In terms of adaptation projects, the World Bank assisted the Nigeria Erosion and Watershed Management Project which was implemented by the Federal Ministry of Environment to tackle the menace of gully erosion in south-east Nigeria and other forms of land degradation in northern Nigeria through integrated watershed management and a climate-resilient approach.

List of acronyms and defined terms used in this Chapter:

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a) GDP and capital wealth

b) Level of unemployment (general and youth)

c) Human wealth, population and education

d) Natural wealth, including metals and minerals deposits (such as critical mineral resources, rare earth elements and green/battery minerals and metals) and other natural resources

e) Renewable/green energy wealth (opportunities and requirements)

f) Carbon removal or reduction wealth

With an estimated population between 216.7 million¹ and 218 million as of 2022,² a GDP of more than $472 billion,³ a GDP growth of 3.52% (year-on-year) in real terms in the fourth quarter of 2022,⁴ a GNI per capita of $2,160 as of 2022,⁵ and gross foreign exchange reserves standing at $32.9 billion as of December 2023,⁶ Nigeria is classified as a lower middle-income economy by the World Bank. As of 2022, Nigeria recorded a total unemployment rate of 5.8% and a youth unemployment rate of 13.4%.⁷ Access to primary education in the country, as estimated by the World Bank, stood at 65.3% of the total population as of 2021.

In terms of its natural resource wealth, the country is currently reputed as the largest oil producer in Africa, with estimated reserves as of 1 January 2023 standing at 7.96 billion barrels of crude oil and 28.87 trillion cubic feet of natural gas deposits.⁸ A 2016 – 2025 roadmap report issued by the Nigerian Ministry of Mines and Steel Development⁹ estimates the total and proven reserves of Nigeria’s designated strategic minerals¹⁰ as outlined below:

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With a vast landmass of 910,770 square meters and a 23.6% forest area (as a percentage of land area), Nigeria’s primary carbon removal wealth is its forestry. A report by Global Forestry Watch estimates that between 2001 and 2022, Nigerian forestry had a net carbon sink of -51.9 MtCO2e per year.¹⁶  Biomass is another significant source of carbon removal wealth in Nigeria and is discussed in the key resource indicators highlighted below.

Alongside carbon removal or reduction wealth initiatives, carbon capture, utilization and storage (“CCUS”) initiatives also exist in Nigeria. Nigeria’s CCUS potential exists through the use of depleted oil and gas reservoirs, particularly in the Niger Delta area of Nigeria, for carbon emissions storage.¹⁷ The Government of Nigeria is currently working with the International Finance Corporation (IFC) and the World Bank to develop a domestic market for carbon capture, utilization and storge for industrial emissions.¹⁸ IFC will also work with the government to identify the most promising sectors and private companies that can pilot new technologies for capturing, using, and storing carbon. This initiative has identified two potential projects involving the use of 100-250km pipelines to facilitate offshore emissions transfer from a fertilizer and cement plant to offshore storage in Niger Delta.¹⁹ The next phase of this initiative involves (i) the finalization and publishing of a national strategy on CCUS and a national storage atlas, (ii) commencement of pre-feasibility work on the two potential projects, (iii) deciding on and developing appropriate regulations and (iv) implementing capacity building and stakeholder awareness workshops.

The key resource indicators underpinning the potential investment opportunities in Nigeria’s renewable energy wealth are outlined below, based on data obtained from the International Energy Agency (“IEA”)²⁰ and the Nigeria Investment Promotion Council²¹:

_{1. National Bureau of Statistics, Demographic Statistics Bulletin 2022, https://www.nigerianstat.gov.ng/pdfuploads/DEMOGRAPHIC_BULLETIN_2022_FINAL.pdf Accessed 11 January 2024.}

_{2. World Development Indicators, https://databank.worldbank.org/indicator/NY.GNP.PCAP.CD/1ff4a498/Popular-Indicators# Accessed 11 January 2024.}

_{3. Ibid.}

_{4. National Bureau of Statistics, https://nigerianstat.gov.ng/elibrary/read/1241288 Accessed 11 January 2024.}

_{5. Ibid.}

_{6. Central Bank of Nigeria, https://www.cbn.gov.ng/intops/reserve.asp Accessed 11 January 2024.}

_{7. World Development Indicators, https://databank.worldbank.org/indicator/NY.GNP.PCAP.CD/1ff4a498/Popular-Indicators# Accessed 11 January 2024. The definition of unemployment by the National Bureau of Statistics was recently changed to bring it more in line with the standards of the International Labour Organization (ILO).}

_{8. As estimated by Wood Mackenzie, https://www.woodmac.com/reports/upstream-oil-and-gas-nigeria-upstream-summary-756934/ Accessed 11 January 2024.}

_{9. Nigeria Economic Summit Group https://nesgroup.org/download_policy_drafts/Nigeria%20Mining%20Growth%20Roadmap_2016-2025_1661896687.pdf Accessed 11 January 2024.}

_{10. Discovery of other critical minerals and essential metal deposits such as lithium have been widely reported, however, there are no verifiable estimates of the reserves in Nigeria currently.}

_{11. Only a handful of lithium processing projects have been commissioned in Nigeria, and the commercial quantities are yet to be ascertained. Reports on existing lithium exploration projects within Nigeria include Nasarawa State, Kaduna State, Oyo, Kwara, and Ekiti States. Accessed 11 January 2024.}

_{12. A 2021 Report by the National Steel Raw Materials Exploration Agency has reported discoveries in Ekiti and Taraba States https://nsrmea.gov.ng/blog/bauxite-exploration-in-orin-ekiti-and-mambilla, accessed 11 January 2024.}

_{13. Nigeria’s Mining and Metal Sector Investment Promotion Brochure, 2016 https://msmd.gov.ng/wp-content/uploads/2023/03/Nigeria- Ministry-of-Solid-Minerals-Investment-BrochureV12.pdf Accessed 11 January 2024.}

_{14. A 2020 Report by the Nigeria Geological Survey Agency reports that Nigeria is the 12th largest producer of tin globally, https://ngsa.gov.ng/wp-content/uploads/2020/06/Tin.pdf Accessed 11 January 2024.}

_{15. A 2023 report by The Exchange Africa indicates that Nigeria has a considerable share of rare earth metals https://theexchange.africa/industry-and-trade/africa-set-to-become-a-new-el-dorado-for-rare-earths-production/ Accessed 11 January 2024.}

_{16. Forest-Related Greenhouse Gas Fluxes in Nigeria. https://www.globalforestwatch.org/dashboards/country/NGA/?category=climate Accessed 1 March 2024}

_{17. Navigating Nigeria's energy landscape via CCUS and Hydrogen for sustainability - Businessday NG Accessed 13 March 2024.}

_{18. IFC and World Bank to Help Nigeria Pave the Way for Domestic Carbon Storage Accessed 13 March 2024.}

_{19. IFC Nigeria Dissemination Workshop on Industrial CCUS and a new Centre of Excellence! - BLOG (ieaghg.org) Accessed 13 March 2024.}

_{20. International Energy Agency, https://www.iea.org/countries/nigeria Accessed 11 January 2024.}

_{21. Nigeria Investment Promotion Council, Renewable Energy Report, 2020. https://nipc.gov.ng/wp-content/uploads/2020/07/Renewable- energy.pdf Accessed 11 January 2024.}

_{22. https://www.iea.org/countries/nigeria/renewables}

_{23. International Renewable Energy Agency, Nigeria Energy Profile https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Africa/Nigeria_Africa_RE_SP.pdf Accessed 11 January 2024}

_{24. Nigeria Investment Promotion Council, Renewable Energy Report, 2020. https://nipc.gov.ng/wp-content/uploads/2020/07/Renewable-energy.pdf Accessed 11 January 2024.}

_{25. IHA Hydropower Status Report 2022. https://assets-global.website-files.com/5f749e4b9399c80b5e421384/62d95e9c1d2120ce0b891efc_IHA%20Hydropower%20Status%20Report%202022.pdf Accessed 11 January 2024.}

_{26. https://downloads.unido.org/ot/30/85/3085524/UNIDO_Prodoc_RE_Nigeria.pdf Accessed 11 January 2024.}

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a) undertaking, including key dates and caveats

b) use of net zero wealth for own target

c) existing collaboration among countries and opportunities for future collaboration

d) residual for the rest of the world

Nigeria, through its Department of Climate Change (a department under the Federal Ministry of Environment), issued its first Nationally Determined Contribution (“NDC”) in 2015 to the United Nations Framework Convention on Climate Change (“UNFCCC”). In 2021, it updated the NDC²⁷,  revising the estimates and projections that had been made under the 2015 NDC, due largely to the availability of much more accurate information.

Under the 2021 NDC, Nigeria’s targets are summarized as follows:

The 2021 NDC notes that the targets set above are an overall progression towards the draft 2050 vision of halving current GHG emissions in Nigeria, and with an estimated reduction of 100 MtCO2e, remaining consistent with Nigeria’s proposed emission reductions on the pathway to a global 1.5oC target.

While underscoring the importance of international support, the 2021 NDC outlines two priority sectors in Nigeria, and how they will influence Nigeria’s overall net zero targets.

a. The Energy Sector³⁰: energy generation plays a bifurcated role in economic development and emissions contribution to the Nigerian economy. It is estimated that the sector contributed 208 MtCO2e, constituting 60% of Nigeria’s total GHG emissions in 2018.³¹ To achieve its 2021 NDC targets, Nigeria notes it may need support in utilizing its net zero wealth in implementing the following measures:

b. Agriculture, Forestry, and Land Use (“AFOLU”): it is estimated that agriculture, forestry, and other land use contribute about 25% of Nigeria’s GHG emissions. The 2021 NDC estimates that Nigeria has an estimated mitigation potential of 115.52 MtCO2e/year. It further indicates that nature-based solutions such as agroforestry, improved forest management, and forest restoration have a combined mitigation potential of 89 MtCO2e/year.

c. Waste: it is estimated that the waste sector contributed about 9% to Nigeria’s GHG emissions. The principal objective for this under the 2021 NDC is a 10% reduction in methane emission from organic solid waste through diversion to composting. A summary of the approach of mitigation measures towards waste includes revamping waste management projects, creating waste management public-private partnerships (“PPP”), increasing waste-to-wealth schemes nationwide to create jobs and reduce landfills, and lastly increasing legislation enforcement by strengthening institutions.

d. The other targeted reductions are the proposed 80% reduction in the use of hydrofluorocarbons by 2047 which impacts the 5% of GHG emissions generated under industrial processes and product use; and the achievement of Nigeria’s NDC is estimated to reduce black carbon, methane, hydrofluorocarbon emissions by 42%, 28% and 2% respectively by 2030. Furthermore, other health-damaging air pollutants such as particulate matter or nitrogen oxides are to be reduced by 35% and 65% respectively.

Nigeria’s NDC makes no explicit commitment regarding the residual for the rest of the world, however, the NDC notes that based on historical emissions (1850-2010), while Nigeria contributes only about 1% of global total emissions, Nigeria significantly contributes to holding the increase in the global average temperature to well below 2°C above pre-industrial levels and is pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.

e. Nigeria indicates its readiness to collaborate with other countries, as evidenced in its collaboration through the establishment of the Lake Chad Basin Commission, which is a collaboration between the four countries of Nigeria, Niger, Chad, and Cameroon, and one of the objectives of the commission is to manage the shared water resources between these four countries and preserve the ecosystem and biodiversity, among others. Nigeria also actively engages with Norway in the oil and gas sector, regarding efforts aimed at reducing emissions in the sector.³⁶

_{27. https://climatechange.gov.ng/wp-content/uploads/2021/08/NDC_File-Amended-_11222.pdf Accessed 11 January 2024.}

_{28. Greenhouse Gases (“GHG”)}

_{29. The 2021 NDC acknowledges that the projected baseline GHG emissions in 2030 are considerably lower than the 898 MtCO2e in the 2015 NDC. The basis for this variance includes the different historic estimates of GHG emissions; assumptions about the socio-economic development of Nigeria; and the shorter period in which growth rates are measured.}

_{30. The variables constituting the Energy Sector are oil and gas, transport, electricity generation, and residential and industrial consumption.}

_{31. https://climatechange.gov.ng/wp-content/uploads/2021/08/NDC_File-Amended-_11222.pdf Accessed 11 January 2024.}

_{32. Not available.}

_{33. Not available.}

_{34. Not available.}

_{35. Not available.}

_{36. https://www.nuprc.gov.ng/nuprc-and-norwegian-delegates-collaborative-engagement/ Accessed 11 January 2024.}

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In 2021, the Federal Ministry of Environment outlined the 2050 – Long Term Vision for Nigeria, prepared towards achieving the Long-Term Low Emissions Development Strategy. In 2023 at the COP28 Conference in Dubai, UAE, Nigeria finally launched its Long-Term Low Emission Development Strategy, 2060 (“LT-LEDS”),³⁷ however, a public version is yet to be made available. A draft version of the LT-LEDS included examples of successful mitigation and adaptation projects that have been carried out in Nigeria (among other things).

Regarding mitigation, one noteworthy measure is the promotion of solar home systems, financed by public sector agencies like the Rural Electrification Agency (“REA”). Since 2015, the REA has allocated $550 million for mini-grid and solar PV deployments and a separate NGN140 billion aimed at mini-grid developers and solar systems distributors between 2015 and 2022.³⁸ In a 2022 impact report, the REA reports that it has surpassed its 1 million connection target under the standalone solar homes systems to improve energy access.³⁹ A recent report by the International Renewable Energy Agency (“IRENA”) (2023)⁴⁰ indicates that nearly 60% of Nigeria’s energy demand in 2050 can be met with renewable energy sources, saving 40% in natural gas and 65% in oil needs at the same time. So far, a report by Nigeria SE4All indicates that 113 mini grids are registered with the Federal Ministry of Power, with about 145 communities already connected in Nigeria.⁴¹

Another successful mitigation project was the private-sector-led transition to EV-driven mass transit systems. In 2022, Oando Clean Energy Limited, a part of the Oando Plc group, signed a Memorandum of Understanding with the Lagos Metropolitan Transport Authority, to enable the successful deployment of an Electric Vehicle Infrastructure Ecosystem (electric buses, charging stations, and other supporting infrastructure) towards the attainment of a sustainable road transport system in the state. Some of the outcomes of the project include sustainable transport that will lead to improved air quality, enhanced public health, and enable the employment of at least 3,000 new drivers and an additional 2,000 workers to support bus maintenance, depot management, etc. as well as estimated economic cost savings of $2.6bn.⁴²

In terms of adaptation, a key adaptation project to highlight is the Great Green Wall Project, which has seen implementation through the planting of 21 million trees in an afforestation drive.⁴³

In addition, the World Bank assisted the Nigeria Erosion and Watershed Management Project (NEWMAP), which was implemented by the Federal Ministry of Environment to tackle the menace of gully erosion in south-east Nigeria and other forms of land degradation in northern Nigeria through integrated watershed management and a climate-resilient approach.⁴⁴

_{37. Nigerian Tribune, Keyamo launches Nigeria’s long-term low emission development strategy. https://tribuneonlineng.com/keyamo-launches-nigerias-long-term-low-mission-development-strategy/ Accessed 11 January 2024.}

_{38. https://climatechange.gov.ng/wp-content/uploads/2021/08/NDC_File-Amended-_11222.pdf Accessed 11 January 2024.}

_{39. https://rea.gov.ng/rea-impact-report-2022-17.pdf Accessed 11 January 2024.}

_{40. IRENA (2023): Renewable Energy Roadmap in Nigeria: International Renewable Energy Agency. Abu Dahbp}

_{41. Nigeria SE4ALL | Mini-Grids Accessed 11 January 2024.}

_{42. https://punchng.com/oando-receives-electric-mass-transit-buses-for-lagos/ Accessed 11 January 2024.}

_{43. https://www.vanguardngr.com/2023/09/the-success-story-of-nigerias-great-green-wall-project/ Accessed 11 January 2024.}

_{44. https://documents1.worldbank.org/curated/en/809141468144274655/pdf/685560BR0P12490Official0Use0Only090.pdf Accessed 11 January 2024.}

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Nigeria adopts the common law but has a mixed-source legal system which also includes the adoption of principles found under the received English Law, customary law, and Shariah law (currently adopted in a few States within Nigeria), to the extent to which they apply to the circumstances of a case.

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a) Legal framework

b) Structure of the judiciary

c) Jurisdiction of national courts and tribunals to hear and determine judicial review applications regarding Environmental Protection

The framework of the Nigerian legal system is based on the Constitution of the Federal Republic of Nigeria, 1999 (as amended) (the “Nigerian Constitution”), which designates the right of National and Sub-national State legislatures to legislate on issues of environmental protection, concurrently. At the national and sub-national levels, there exists the Federal Ministry of Environment and the State Ministry of Environment respectively.

The judicial system is hierarchical in nature and divided between federal and state jurisdictions. Federal and state high courts hear matters at the first instance, and their respective jurisdictions are determined by either the subject matter, monetary limits⁴⁵ or the territory in which the matter arose. Decisions from the courts are subject to the Court of Appeal and ultimately the Supreme Court, which is the highest court in Nigeria.

Nigerian laws, at the federal and state levels, typically make provisions for tribunals or mobile courts.⁴⁶ Decisions from these tribunals or mobile courts can be judicially reviewed by courts of first instance (i.e. federal and state high courts), based on their respective court rules. The standard of review is generally based on the validity of such of a judicial order or executive action under the Nigerian Constitution or the relevant applicable statute. The typical remedies in judicial review applications include prerogative orders of injunctions, mandatory orders, prohibitory orders and quashing orders.

At the federal and state high court level, there are no specialized courts of record with exclusive jurisdiction to hear and determine environmental cases. A general guiding principle is that based on the rules of respective courts, the institution of matters may be subject to monetary claim limits.

Generally, a civil proceeding in Nigeria may be conducted between two to three years from commencement to a final decision, however, some courts provide for expedited civil trial procedures in certain instances.

_{45. Generally, matters that involve more than NGN10 million are instituted at the federal or state high courts.}

_{46. Section 8(f) National Environmental Standards and Regulations Enforcement Agency (Establishment) Act.}

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a) Constitution

b) Climate law framework, including:

• Environmental laws

• Air quality-focused laws

• Climate change-specific law(s)

• Energy laws that consider climate change issues, including renewable energy

• Licensing, authorisations and permitting requirements

Legislation

• Constitution of the Federal Republic of Nigeria 1999 (as amended) (the “Constitution”)  ⁴⁷

The Constitution makes provision for certain principles that underlie part of Nigeria’s environmental ideals and the need for a transition towards a more sustainable and environmentally conscious economy. For instance, Section 20 of the Constitution requires Nigeria to protect the environment for the benefit of present and future generations, underlying the importance of sustainability in the exploration of the environment.

Chapter IV of the Constitution grants a fundamental right to life, clean water, and a healthy environment, thus providing a legal basis for holding public and private stakeholders accountable for the preservation of the environment. In addition, Section 4(4) and 7(b) of the Constitution empower Nigeria’s National Assembly and State Houses of Assembly, respectively, to make laws for the management of environmental pollution and control of natural resources, creating the foundation on which other existing legislative frameworks of Nigerian environmental laws are layered.

• Climate Change Act, 2021⁴⁸

The Climate Change Act 2021 sets an ambitious target of achieving net zero greenhouse gas emissions between 2050-2070⁴⁹ and mandates the development of national climate change action plans, outlining specific strategies and measures for reducing emissions across various sectors. It also establishes a Climate Change Fund to finance mitigation and adaptation projects⁵⁰, among others.

The Act empowers the National Council on Climate Change (NCCC) to collaborate with Federal Inland Revenue Service (FIRS) to develop a mechanism for a carbon tax in Nigeria⁵¹ and imposes varying climate mitigation and adaptation obligations on ministries, departments and agencies of governments, as well as public and certain private entities, respectively.

• Environmental Impact Assessment (“EIA”) Act 1992⁵²:

The EIA Act generally regulates the conduct of environmental impact assessments on certain public or private projects.⁵³

• National Environmental Standards and Regulations Enforcement Agency ("NESREA") (Establishment) Act (2007)⁵⁴

The NESREA Act establishes NESREA which is Nigeria’s primary environmental enforcement agency,⁵⁵ and supervises the implementation of environmental standards and regulations in line with the broader efforts towards achieving net-zero goals. The agency is also mandated to enforce compliance with provisions of international agreements, protocols, conventions, and treaties that have been domesticated in Nigeria.⁵⁶

• The Electricity Act 2023 (“Electricity Act”)⁵⁷

The Electricity Act provides for regulatory collaboration for the development of electricity generation through clean energy resources and establishes a legislative basis for potential solutions such as carbon trading to promote the exploitation of renewable energy sources.⁵⁸ The Act also provides for the implementation of available tax relief and other fiscal incentives for investment in renewable energy development. ⁵⁹

• Hydrocarbon Oil Refineries Act ("HORA")⁶⁰

The HORA provides for the regulation of refineries engaged in hydrocarbon oil refining. It prohibits unlawful refining and provides for administrative penalties such as seizures, and forfeitures⁶¹, with the overall objective being the adoption of cleaner refining technologies and the regulation of storage of refined products.

• Nigerian Ports Authority Act⁶²: empowers the Nigerian Ports Authority to, amongst other functions, control pollution arising from oil or any other substance from ships using the port limits or their approaches.

• Nigerian Maritime Administration and Safety Agency (NIMASA) Act 2007⁶³: regulates for the protection in the marine environment. Section 45(4) provides that packaging and labelling requirements for shipments should be met and certified accordingly, to ensure that the hazard of the shipment to the marine environment is minimized. Section 49(1)(c) provides for the setting up of a marine casualty investigation committee on any event that causes environmental pollution by a ship or small ship or floating platforms. NIMASA is also empowered under the act to make regulations for (i) the removal of wrecks that constitute a threat to the marine environment, and (ii) packaging, marking, labelling, documentation, stowage, quantity limitation and exceptions for preventing or minimising pollution of the marine environment, in conformity with the International Maritime Dangerous Goods Code issued by the International Maritime Organisation.

• Merchant Shipping Act 2007: establishes a duty of the owner and master of a vessel or the owner of any property to exercise due care to prevent or minimise damage to the environment. Provides for the appointment of a Receiver of Wreck. The Receiver of Wreck is responsible for identifying a hazard (which means any condition or threat of substantial physical damage to the marine environment or damage to the coastline), marking the hazard and facilitating the removal of the hazardous wreck.

Regulations & Guidelines

• Central Bank of Nigeria Guidelines on Nigerian Sustainable Banking Principles (“NSBP”)⁶⁴

In 2012, the Central Bank of Nigeria (“CBN”) issued the NSBP Guidelines to serve as a framework guide for all banks, discount houses and development finance institutions operating in Nigeria, encouraging them to integrate environmental and social considerations into their lending and investment strategies. The NSBP Guidelines are consistent with the Equator Principles as it aims at introducing good practices for banks to mitigate the environmental and social risks associated with their business operations.

The Guidelines also mandate banks, discount houses and development finance institutions to submit periodic reports to enable the CBN to track the implementation of and adherence to the principles.

• Environmental Impact Assessment Procedural Guidelines⁶⁵

The EIA Procedural Guidelines is subsidiary legislation that guides the procedure for obtaining EIA approvals for certain projects in Nigeria.

The guidelines further state the key categories of environmental impact assessments to be conducted on projects and provide for environmental and social management plans to be conducted for renewable energy projects.

• Nigerian Environmental Protection (Air Quality Control) Regulations, 2021 (“Regulations”)⁶⁶

The Regulations set the standards relating to air quality and regulate emissions from industries, residential areas, mobile sources, and other sources in Nigeria. The Regulations also consolidate some existing regulations and standards towards the objective of lowering greenhouse gas emissions.

• Merchant Shipping (Anti-Fouling Systems) Regulations, 2012⁶⁷ : provides that persons in charge of shipyards or ship repair facilities are required to ensure that any waste from the application or removal of an anti-fouling system is collected, handled, treated, and disposed of in a safe and environmentally sound manner to protect human health and the environment.

• Merchant Shipping (Ballast Water Management) Regulation, 2012⁶⁸ : places an obligation on the owner, master, or agent of any vessel to which the regulations apply, to ensure that the condition of the vessel and its equipment, systems and processes are maintained to ensure that the vessel remains fit to proceed to sea without presenting a threat of harm to the environment, human health, property, or resources.

• Merchant Shipping (Dangerous or Noxious Liquid Substances in Bulk) Regulations, 2012⁶⁹: regulates the loading and carriage in bulk of dangerous or noxious liquid substances.

• Merchant Shipping (Liability and Compensation) Regulations, 2012⁷⁰: sets liability on ship owners for oil pollution damage. This applies to any ship carrying oil in bulk as cargo or while it is on any voyage following the carriage of any such oil.

• Merchant Shipping (Oil Pollution Preparedness, Response and Co-Operation Convention) Regulations, 2012⁷¹: provides a framework for response to marine pollution caused by oil pollution.

• Merchant Shipping (Prevention of Pollution by Garbage) Regulations, 2012⁷²: prohibits the disposal garbage in the marine environment save in accordance with the provisions of the regulations. It also sets out operational requirements for garbage management on board ships.

• Merchant Shipping (Prevention of Pollution by Sewage) Regulations, 2012⁷³: sets requirements for sewage systems and standard discharge connections for ships and discharge of sewage.

• Merchant Shipping (Sea Dumping) Regulations, 2012⁷⁴: regulates the dumping of waste, issuance of dumping permits, hierarchy of waste management options, inspection regime and penalties for noncompliance.

• Merchant Shipping (Ship Generated Marine Waste Reception Facilities) Regulations, 2012⁷⁵: regulates for the provision of waste reception facilities for all types of ship-generated waste to ensure adequate disposal of waste.

Policies

• Energy Transition Plan ("ETP")⁷⁶

Nigeria’s Energy Transition Plan is a policy roadmap developed by Nigeria in 2021, which sets certain key objectives towards achieving the 2060 net zero target whilst also meeting the nation’s energy needs. The ETP details pathways for significant low-carbon development of energy systems across five key sectors, namely: Power, Cooking, Transport, Industry, and Oil and Gas.

• Nigerian Ports Authority Health, Safety and Environment Policy⁷⁷: this policy aims to achieve the provision of port services in a safe environment for employees and port users. Specific to environmental concerns, the Nigerian Ports Authority (“NPA”) undertakes to manage all projects, operations and processes in a way that minimizes environmental impact. Health, Safety and Environment performance will also be measured and published.

_{(For more information on licensing, permit, and authorizations related to natural resource explorations in Nigeria see Section 17.)}

_{47. Constitution of the Federal Republic of Nigeria 1999 (as amended) 1999 CONSTITUTION OF THE FRN.pdf (nhrc.gov.ng)}

_{48. Climate Change Act 2021 https://disasterlaw.ifrc.org/media/3529}

_{49. Section 1(f), Climate Change Act, 2021.}

_{50. Section 15, Climate Change Act, 2021.}

_{51. Section 4(i), Climate Change Act, 2021.}

_{52. Environmental Impact Assessment Act (ead.gov.ng)}

_{53. Section 2, EIA Act.}

_{54. NESREA Act Microsoft Word - nesrea (placng.org)}

_{55. Section 1, NESREA Act.}

_{56. Section 7, NESREA Act.}

_{57. Electricity Act 2023 ls-ng.com/wp-content/uploads/2023/06/Electricity-Act-2023.pdf}

_{58. Section 2(m), Electricity Act 2023}

_{59. Section 166(1), Electricity Act 2023}

_{60. Hydrocarbon Oil Refineries Act HYDROCARBON OIL REFINERIES ACT.pdf (9jalegal.com.ng)}

_{61. Section 17, Hydrocarbon Oil Refineries Act}

_{62. Nigerian Ports Authority Act}

_{63. Nigerian Maritime Administration and Safety Agency (NIMASA) Act}

_{64. Nigerian Sustainable Banking Principle Implementation of Sustainable Banking Principles.pdf (cbn.gov.ng)}

_{65. EIA Procedural Guidelines EIA-Procedural-Guideline.pdf (ead.gov.ng)}

_{66. Nigerian Environmental Protection (Air Quality Control) Regulations, 2021 nesrea.gov.ng/wp-content/uploads/2023/07/Airquality_Regulation.pdf}

_{67. Merchant Shipping (Anti-Fouling Systems) Regulations 2012}

_{68. Merchant Shipping (Ballast Water Management) Regulation 2012}

_{69. Merchant Shipping (Dangerous or Noxious Liquid Substances in Bulk) Regulations 2012}

_{70. Merchant Shipping (Liability and Compensation) Regulations 2012}

_{71. Merchant Shipping (Oil Pollution Preparedness, Response and Co-Operation Convention) Regulations 2012}

_{72. Merchant Shipping (Prevention of Pollution by Garbage) Regulations 2012}

_{73. Merchant Shipping (Prevention of Pollution by Sewage) Regulations 2012}

_{74. Merchant Shipping (Sea Dumping) Regulations 2012}

_{75. Merchant Shipping (Ship Generated Marine Waste Reception Facilities) Regulations 2012}

_{76. Nigeria’s Energy Transition Plan Nigeria Energy Transition Plan}

_{77. Nigerian Ports Authority Health, Safety and Environment Policy}

‍

• Climate Change Act 2021⁷⁸

The Act is further described above, but among other things this empowers the National Council on Climate Change (NCCC) to collaborate with the Federal Inland Revenue Service (FIRS) to develop a mechanism for a carbon tax in Nigeria⁷⁹

The Act also empowers the NCCC to collaborate with the Federal Ministry responsible for Environment and the Federal Ministry responsible for Trade and Industry to develop and implement a mechanism for carbon emission trading.⁸⁰ In August 2022, the NCCC in conjunction with the Federal Ministry of Environment and Federal Ministry of Trade and Industry launched the Nigerian Emission Trading Scheme in line with the legal framework provided in the Climate Change Act to help in the reduction of greenhouse gas emissions through a carbon market base approach to meet its net zero target.⁸¹

The Act permits the NCCC, to issue regulations that may require private and public entities to report on their GHG reduction efforts and mitigation measures.⁸² The Act also makes it a criminal offence to act in a manner that negatively affects efforts toward climate mitigation and adaptation.

• Subnational Forestry Laws, Regulations & Policy

Certain subnational regions in Nigeria have created laws aimed at designating forest reserves and determining to what extent those protected areas can be explored. For instance, the Ekiti State Forestry Law, 2016,⁸³ permits the state government to designate an area as a forest reserve or protected forest. This law creates a framework for permitting private-public partnerships for setting up forest carbon sinks. Other prohibitive laws such as the Kwara State Charcoal Production (Prohibition) Law⁸⁴ criminalize the destruction of forestry, in a bid to facilitate conservation efforts. In addition to subnational laws across different states in Nigeria, the National Forestry Policy 2006,⁸⁵ recognizes the possibility of forest carbon pools of plantation and carbon forests being created to encourage the clean development mechanism under the Kyoto Protocol, which will enable access to foreign markets for forest-based carbon credits.

_{78. Climate Change Act 2021 https://disasterlaw.ifrc.org/media/3529}

_{79. Section 4(i), Climate Change Act, 2021.}

_{80. Section 4(j), Climate Change Act 2021.}

_{81. Nigerian Government Launches Emission Trading Scheme, ETS Nigerian Government Launches Emission Trading Scheme, ETS – Department of Climate Change}

_{82. Section 32, Climate Change Act}

_{83. Ekiti State Forestry Law, 2016 https://ekitistate.gov.ng/hoa/2020/No1of2016.pdf}

_{84. Kwara State Charcoal Production (Prohibition) Law, https://kwaralaws.ng/product/charcoal-production-prohibition-law/}

_{85. National Forestry Policy, 2006 https://www.fao.org/forestry/15148-0c4acebeb8e7e45af360ec63fcc4c1678.pdf}

_‍

In addition to the regulatory framework discussed in Sections 6 and 7 above, the additional laws, regulations and policies highlighted below directly impact on matters related to climate mitigation and adaptation in Nigeria:

Legislations & Regulations

The acts are further described above, but specifically to climate mitigation and adaptation:

• The Climate Change Act, 2021⁸⁶ is Nigeria’s primary climate change law that establishes the National Council on Climate Change⁸⁷, the Climate Change Fund⁸⁸, and mandates the implementation of the National Climate Change Action Plan⁸⁹, all geared towards Nigeria’s implementation of climate mitigation and adaptation measures and net zero commitments.

• The Environmental Impact Assessment ("EIA") Act and Environmental Impact Assessment Procedural Guidelines require the consideration of climate change impacts and adaptation measures in project development, ensuring long-term environmental sustainability.

• Petroleum Industry Act ("PIA") 2021⁹⁰

The PIA is Nigeria's primary oil and gas exploration law, provisions of which impact on matters related to the climate and environmental protection within the Nigerian oil and gas sector. The Act establishes two regulatory bodies; the Nigerian Upstream Petroleum Regulatory Commission ("NUPRC") responsible for regulating upstream activities including licensing, exploration, production, and decommissioning, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority ("NMDPRA") responsible for regulating activities such as transportation, storage, refining, and marketing. The Act mandates operators to take measures to prevent and minimize environmental damage and pollution, including oil spills, gas flaring, and waste generation during the commissioning, operation, and decommissioning of exploration sites.

• National Environmental (Wetlands, River Banks and Lake Shores Protection) Regulations, 2009⁹¹

The Regulations provide for the conservation and use of wetlands and their resources in Nigeria.

• National Environmental (Watershed, Mountainous, Hilly and Catchments Areas) Regulations 2009⁹²

These Regulations ensure good land management practices with respect to watersheds, mountainous, hilly and catchment areas.

• National Environmental (Access to Genetic Resources and Benefit Sharing) Regulations 2009⁹³

These Regulations regulate the access to and use of genetic resources to ensure the regeneration and sustainability of threatened species.

• National Environmental (Coastal and Marine Area Protection) Regulations 2011⁹⁴

These Regulations provide for the regulatory framework for the application of preventive, precautionary and anticipatory approaches so as to avoid the degradation of the coastal and marine environment.

• Gas Flaring Venting and Methane Emissions (Prevention of Waste and Pollution) Regulations 2023⁹⁵

These Regulations aim to reduce gas flaring and venting of natural gas and fugitive methane emissions into the atmosphere and mandates the reporting of gas flare data by sector operators to the Nigeria Upstream Petroleum Regulatory Commission.

Policies

• National Climate Change Policy (2021)⁹⁶

The National Climate Change Policy outlines Nigeria's approach to addressing climate change challenges. It emphasizes adaptation and resilience-building strategies, including the integration of climate considerations into various sectors such as agriculture, water resources, health, and infrastructure.

• National Policy on Environment ("NPE") 2016⁹⁷

The NPE aims to ensure environmental protection and the conservation of natural resources for sustainable development. The NPE addresses various environmental challenges, including deforestation, desertification, biodiversity loss, pollution, and waste management.

• National Adaptation Strategy and Plan of Action on Climate Change for Nigeria ("NASPA-CCN") 2011⁹⁸

The NASPA-CCN aims to reduce vulnerability to climate change impacts and increase the resilience and sustainable wellbeing of all Nigerians. It provides a detailed framework for adapting to the impacts of climate change. It includes sector-specific adaptation plans and actions, recognizing the need to enhance resilience in key sectors such as agriculture, water resources management, forests, biodiversity, housing, energy, among others.

• National Water Resources Policy (2016)⁹⁹

The National Water Resources Policy acknowledges the impact of climate change on water resources and outlines strategies for adaptation, sustainable water management, and the protection of water-related ecosystems.

• National Renewable Energy and Energy Efficiency Policy ("NREEEP") 2015¹⁰⁰

This policy promotes the deployment of renewable energy and energy efficiency measures to reduce emissions. The NREEEP aims to increase the share of renewable energy in Nigeria's energy mix to 30% by 2030, replacing fossil fuel-based generation and reducing GHG emissions. It also emphasizes the need for climate-resilient design and construction of renewable energy infrastructure to withstand extreme weather events associated with climate change.

_{86. Climate Change Act 2021 https://disasterlaw.ifrc.org/media/3529}

_{87. Section 3, Climate Change Act 2021}

_{88. Section 15, Climate Change Act 2021}

_{89. Section 20, Climate Change Act 2021}

_{90. Petroleum Industry Act pia.gov.ng/wp-content/uploads/2022/08/PIA-2021_compressed-1.pdf}

_{91. Wetlands_River_Banks_and_Lake_Shores_Protection_ Regulations 2009.pdf (nesrea.gov.ng)}

_{92. Watershed_Mountainous_Hilly_and_Catchment_Areas_ Regulations 2009.pdf (nesrea.gov.ng)}

_{93. ACCESS-TO-GENETIC-RESOURCES-AND-BENEFIT-SHARING.pdf (nesrea.gov.ng)}

_{94. Coastal_and_Marine_Area Protection_Regulation 2011 .pdf (nesrea.gov.ng)}

_{95. NUPRC Gas Flaring Venting and Methane Emissions (Prevention of Waste and Pollution) Regulations 2023 Gas-Flaring-and-Venting-Prevention-of-waste-and-Pollutions-Regulations.pdf (nuprc.gov.ng)}

_{96. National Climate Change Policy (2021) https://climatechange.gov.ng/wp-content/uploads/2021/08/NCCP_NIGERIA_REVISED_2-JUNE-2021.pdf}

_{97. National Policy on Environment 2016 nig176320.pdf (fao.org)}

_{98. National Adaptation Strategy and Plan of Action on Climate Change for Nigeria (NASPA-CCN) nig211219.pdf (fao.org)}

_{99. National Water Resources Policy (2016) nig158231.pdf (fao.org)}

_{100. National Renewable Energy and Energy Efficiency Policy (NREEEP) 2015 Microsoft Word - Final RE & EE Policy Draft IX 03112014 200415 FEC APPROVED 2.docx (power.gov.ng)}

‍

The financial legal framework in Nigeria is designed to provide a stable and transparent environment for financial operations, protect the interests of stakeholders, and ensure the overall stability of the financial system. It can be broadly divided into banking and finance law, capital markets, insurance, mergers and acquisitions, and tax laws.

Banking and Financial Institutions

• Banks and Other Financial Institutions Act ("BOFIA"), 2020: regulates the establishment, operation, and supervision of banks and financial institutions in Nigeria. It covers among other things, the licensing, capital requirements, corporate governance of banks and financial institutions, as well as the powers of the Central Bank of Nigeria, the apex financial regulator.

• Central Bank of Nigeria ("CBN") Act, 2007: establishes the Central Bank of Nigeria and outlines its functions, powers, and responsibilities. It guides the key role of the CBN in monetary policy, currency issuance, and the overall stability of the financial system.

• Companies and Allied Matters Act ("CAMA") as amended 2020¹⁰¹

The CAMA is Nigeria's primary business regulation law and provides a comprehensive framework for the registration and administration of businesses in Nigeria. Additionally, it provides a framework for mergers, acquisitions, disposals, financing, winding up, restructuring and joint ventures of businesses operating within Nigeria.

• Foreign Exchange (Monitoring and Miscellaneous Provisions) Act governs foreign exchange transactions and the management of external reserves, as supervised by the CBN.

Capital Markets

• Investment and Securities Act ("ISA") 2007 (As Amended)

The ISA provides the legal framework for the regulation of the Nigerian capital market. It establishes the Securities and Exchange Commission, Nigeria’s apex capital markets regulator and provides the framework for the registration and regulation of securities, exchanges, and market intermediaries.

• Securities and Exchange Commission ("SEC") Rules and Regulations 2013 (As Amended) ¹⁰²

The SEC Rules issued and updated periodically by the SEC provide a robust legal framework for capital market operations, and are aimed at safeguarding investors, and promoting a fair and efficient capital market, and driving economic growth in Nigeria.

• SEC Guidelines on Sustainable Financial Principles for the Nigerian Capital Market

In line with the national commitment to reducing GHG emissions and achieving net zero targets, SEC adopted the Nigerian Sustainable Financial Principles as developed by the Nigerian Financial Services Regulation Coordinating Committee. Under the Guidelines, regulated entities are expected to establish organization standards geared towards integrating these global principles into their organizational cultures such that all stakeholders are committed to sustainable finance and ensuring successful implementation.

Insurance

• Insurance Act 2003¹⁰³

The Insurance Act regulates the insurance industry in Nigeria. It covers the licensing and operations of insurance companies, as well as the protection of policyholders.

Financial Crimes

• Money Laundering (Prevention and Prohibition) Act, 2022: criminalizes money laundering activities and provides mechanisms for combating money laundering and terrorism financing.

• Economic and Financial Crimes Commission (Establishment) Act ("EFCC" Act): establishes the Economic and Financial Crimes Commission, which is responsible for investigating and prosecuting economic and financial crimes.

• Corrupt Practices and Other Related Offences Act, 2000: establishes the Independent Corrupt Practices and other related offences Commission, which is empowered to prosecute corrupt practices in Nigeria.

Mergers & Acquisitions

• Federal Competition and Consumer Protection Act ("FCCPA") 2018¹⁰⁴

The FCCPA establishes a comprehensive framework for regulating mergers, acquisitions, disposals, financing, and joint ventures in Nigeria, with a focus on preventing anti-competitive practices and upholding fair market competition.

The Act establishes the Federal Competition and Consumer Protection Commission (FCCPC) and empowers it to approve or prohibit or impose conditions on mergers and acquisitions in Nigeria. It also covers disposals of undertakings or assets that could raise competition concerns.

• Federal Competition and Consumer Protection Act Merger Review Regulations ("MRR") 2020 and 2021 (as amended)¹⁰⁵

The MRR outlines the review process followed by FCCPC, including timelines for decision-making, opportunities for parties to respond, and potential remedies for anti-competitive mergers. It also specifies the information and documents required in a merger notification, including financial data, market analysis, and justification for non-notification.

Debt Management

• Debt Management Office (Establishment, Etc.) Act: establishes the Debt Management Office, responsible for the management of Nigeria’s sovereign debt portfolio.

_{101. Companies and Allied Matters Act 2021 C20.pdf (placng.org)}

_{102. Securities and Exchange Commission (SEC) Rules and Regulations 2013 SEC CONSOLIDATED RULES.pdf (cscs.ng)}

_{103. Insurance Act 2003 bing.com/ck/a?!&&p=fc2bd2b208fcb5d4JmltdHM9MTcwNTAxNzYwMCZpZ3VpZD0wMzU3ZWYyYy01YmJhLTZhNzYtMmY5YS1mY2M5NWFhNzZiMGMmaW5zaWQ9NTE4NA&ptn=3&ver=2&hsh=3&fclid=0357ef2c-5bba-6a76-2f9a-fcc95aa76b0c&psq=insurance+act+pdf&u=a1aHR0cHM6Ly9sYXdwYWRpLmNvbS93cC1jb250ZW50L3VwbG9hZHMvMjAxNS8wOC9JbnN1cmFuY2UtQWN0LTIwMDMucGRm&ntb=1}

_{104. Federal Competition and Consumer Protection Act (FCCPA) 2018 https://fccpc.gov.ng/resources-library/fccpa/}

_{105. Federal Competition and Consumer Protection Act Merger Review Regulations 2020 https://fccpc.gov.ng/wp-content/uploads/2022/07/Merger-Review-Regulations.pdf}

‍

Legislations and Regulations

• Constitution of the Federal Republic of Nigeria 1999, as amended.

Schedule 4(2)(b) provides that the local government councils within each state in Nigeria carry out the function of the development of agriculture and natural resources, other than the exploitation of materials.

• Infrastructure Concession and Regulatory Commission ("ICRC") (Establishment), Act 2005: establishes the ICRC, Nigeria's concession commission, and provides for the contractual framework in which public-private partnership projects can be undertaken as well as the general bidding and procurement process for concession projects.

• Public Procurement Act, 2007: regulates the bidding and procurement processes which is supervised by the Bureau of Public Procurement (BPP) created by the Act.

• Land Use Act 1978: grants the Governor of each state in Nigeria, control over land within the state, including the power to grant rights of occupancy for mining and exploration purposes.

• Nigerian Minerals and Mining Act 2007: this is the primary legislation governing mining activities in Nigeria. The Act establishes a licensing system for prospecting and mining operations and defines different types of minerals and regulates their exploration and exploitation. The Act also outlines environmental and social safeguard requirements for mining companies.

• Nigerian Minerals and Mining Regulations 2011: provide detailed procedural and administrative guidelines for implementing the Mining Act. They also specify fees, forms, and timelines for applying for and obtaining mining licences.

• Guidelines for the Production of Community Development Agreement in the Solid Mineral Sector: regulates mining operations by mineral title holders in communities containing solid mineral resources by providing for a Community Development Agreement ("CDA"), a contractual instrument which ensures the transfer of socio-economic benefits to mining host communities. The Guidelines provides information on who should be involved in CDA processes, the appropriate timelines for CDA processes, the appropriate template for writing a CDA and mechanisms for the implementation, monitoring and funding and termination of CDA processes.

• Water Resources Act, 2004 (as amended by the Water Resources (Amendment) Act 2016 :¹⁰⁶ regulates the exploitation of water resources and provides the legislative framework for the issuance of water licences as supervised by the Minister of Water Resources.

• Hydroelectric Power Producing Areas Development Commission Establishment Act 2010 ("HYPPADEC" Act)¹⁰⁷

This Act established the Hydroelectric Power Producing Areas Development Commission and empowers it to address ecological challenges arising from the operations of dams and other hydroelectric power activities in the power producing areas, which includes Benue, Gombe, Kaduna, Kebbi, Kogi, Kwara, Nasarawa, Niger, Plateau, Taraba, and any other states affected by the activities of hydro-electric power generated on River Benue, River Niger, or any designated inland waterway.

The HYPPADEC Act has now been repealed by the Electricity Act 2023, and its provisions has been subsumed into Part VII of the Electricity Act.

• Petroleum Industry Act ("PIA") 2021¹⁰⁸

The PIA empowers regulatory bodies to negotiate agreements with oil and gas companies operating in Nigeria. These agreements can include stringent environmental safeguards and mitigation measures to address potential impacts on the environment and communities. The Act also mandates that the bidding process and grant of petroleum exploration licences by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) must be open, transparent, competitive, and non-discriminatory.

In a bid to foster sustainable prosperity within host communities, the PIA requires operators to set up a host communities development fund for the communities in which they operate, appoint a board of trustees, and contribute 3% of its actual annual operating expenditure to the fund.

• Petroleum Licensing Round Regulations 2022¹⁰⁹

This Regulation provides a regulatory framework for conducting a fair, transparent, and competitive bidding process for the grant of petroleum prospecting licences and petroleum mining leases.

Typical Contractual Safeguards in Natural Resource Exploitation Agreements

• Community Engagement and Consultation: clauses in contracts may require engagement with local communities affected by the natural resource exploitation. This may include consultation, social impact assessments, and the implementation of community development initiatives.

• Environmental Impact Assessment ("EIA") Act: clauses in a contract may require compliance with the EIA Act, which mandates the assessment of potential environmental impacts before commencing certain projects. Compliance may involve conducting an EIA study, public consultation, and obtaining regulatory approvals.

_{106. Water Resources (Amendment) Act 2016 Water-Resources-Amendment-Act-2016-1.pdf (sabilaw.org)}

_{107. HYPPADCE Act 2010 Microsoft Word - HYDROELECTRIC POWER PRODUCING AREAS DEVELOPMENT COMMISSION _ESTABLISHMENT, ETC,_ ACT, 2010 (placng.org)}

_{108. Petroleum Industry Act pia.gov.ng/wp-content/uploads/2022/08/PIA-2021_compressed-1.pdf}

_{109. Petroleum Licensing Round Regulations 2022 Nigeria-Licensing-Round-Regulations-hamonized.pdf (nuprc.gov.ng)}

‍

a) Repatriation of funds

b) Access to international arbitration

c) Protection against expropriation

d) Standards of treatment and protection

e) Import / export controls

f) Supply chain risks

The Nigerian laws and regulations which provide protection of foreign investments include:

• Constitution of the Federal Republic of Nigeria 1999 (as amended)¹¹⁰

Section 44 prohibits the compulsory acquisition of property by the government except in line with the law, and provided adequate compensation is made, thus setting a threshold for any intervention involving foreign-owned property.

• Nigeria Investment Promotion Commission ("NIPC") Act 2004¹¹¹

The NIPC Act guarantees non-discrimination against foreign investors and provides the legislative basis for the free entry and exit for investments. It also establishes the Nigeria Investment Promotion Commission (NIPC) as the primary agency for facilitating foreign investment.

Section 24 of the NIPC Act guarantees unrestricted transferability of proceeds and capital repatriation on liquidation. Section 25 of the NIPC Act prohibits expropriation of foreign investments except for public purpose on payment of fair and adequate compensation. Section 26 of the NIPC Act provides for dispute settlement procedures in the event that a dispute involving an investor cannot be settled through mutual discussion. Some of the dispute resolution mechanisms recognized includes the Arbitration and Mediation Act, the International Centre for Settlement of Investment Disputes Rules, and multilateral and lateral agreements on investment protection.

The NIPC Act guarantees fair and non-discriminatory treatment of foreign investments compared to domestic investments.

• Investment and Securities Act ("ISA") 2007¹¹²

The ISA regulates the capital markets and protects foreign investments in securities and stock exchange transactions by guaranteeing non-discrimination and fair treatment of foreign investors. Establishing the Investor Protection Fund provides a safety net for foreign investors in case of unforeseen events. The ISA also establishes the Investment and Securities Tribunal (IST), which is responsible for resolving investment disputes in Nigeria and prohibiting unfair pricing practices and market manipulation.

• Foreign Exchange (Monitoring and Miscellaneous Provisions Act ("FEMMP" Act) 1999¹¹³

Section 13 and 15 of the FEMMP Act permits the free flow of foreign currency provided that importation is done through a certificate of capital importation obtained from an authorised dealer.

• Arbitration and Mediation Act 2023 ¹¹⁴

This Act provides a legal framework for the recognition and enforcement of foreign arbitral awards in Nigeria, through the recognition of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

• Customs and Excise Management Act ("CEMA") 2004¹¹⁵

The CEMA empowers the Nigeria Customs Service to monitor import and exports of goods in Nigeria, based on regulations that are issued by the Ministry of Trade and Ministry of Finance, respectively.

• Nigerian Export and Processing Zone Authority ("NEPZA") Act¹¹⁶

The NEPZA Act provides a framework for the establishment of special economic zones that have several export-focused incentives, in a bid to encourage foreign investments. Typical export processing will be exempted from all federal, state and local government taxes, levies and rates, ensuring unhindered repatriation of earnings and invested capital.

• Public Procurement Act 2007¹¹⁷

The Act also establishes an administrative review process for aggrieved bidders, including foreign companies, to contest procurement decisions.

• Industrial Development (Income Tax Relief) Act ¹¹⁸

This Act creates a secured environment for foreign investments in Nigeria through its tax relief provisions for pioneer industries. Section 10 of the Act grants companies with pioneer status, including foreign companies, a tax holiday for a period of up to five years (depending on the specific industry), significantly reducing their tax burden and lowering investment risks for foreign companies.

• Capital Gains Tax Act¹¹⁹

This Act provides for certain exemptions with countries that Nigeria has a double taxation treaty with, enabling investors from those countries to enjoy tax relief on capital gains tax.

• Standard Organization of Nigeria Act¹²⁰

The Act contributes to the management of supply chain risks in Nigeria by promoting product quality and safety throughout the supply chain. The Act establishes the Standard Organization of Nigeria (“SON”) and empowers it to establish mandatory standards for a wide range of products, including industrial materials, and to issue certificates of conformity for products that meet the established standards.

• Nigerian Customs Services Act 2023¹²¹

This Act establishes guidelines for customs procedures, including import duties, clearance processes, and prohibited goods which helps to reduce risks of smuggling and illegal trade, facilitate legitimate trade, and prevent the entry of hazardous goods and materials.

• NIMASA Act¹²²

The Nigerian Maritime Administration and Safety Agency (“NIMASA”) Act primarily focuses on the regulation of maritime activities, safety, and security within Nigerian waters.

The Act empowers NIMASA to establish and enforce regulations concerning the construction, equipment, and operation of vessels operating within Nigerian waters; implement and enforce security measures in Nigerian ports in accordance with international standards such as the International Ship and Port Facility Security (ISPS) Code which mitigate the risk of security threats such as piracy, terrorism, and theft, which could disrupt supply chain operations; and protect Nigeria's marine environment from pollution and other harmful activities.

• Nigerian Ports Authority Act¹²³

The Nigerian Ports Authority (“NPA”) Act empowers the NPA to develop, maintain, and operate port infrastructure across Nigeria; directly impacting the efficiency of cargo movement, minimizing delays, and ensuring the smooth flow of goods within the supply chain. By establishing clear operational guidelines and ensuring efficient cargo handling processes, the NPA Act helps to reduce congestion and minimize cargo damage.

• African Continental Free Trade Agreement ("AfCFTA")¹²⁴

Nigeria is signatory to the AfCFTA which establishes a single market for goods, services, and labor across member states within Africa, thereby allowing free movement of investors and investments, and creating a unified continental customs union.

• ECOWAS Trade Liberalization Treaty

Nigeria is signatory to the multilateral agreement which seeks to promote and facilitate trade within the region through the abolition of custom duties on imports and exports of goods produced in member states and the abolition of non-tariff barriers among member states.

• Investment Promotion and Protection Agreements ("IPPA"s)

An IPPA seeks reciprocal promotion of investments in participating states. Nigeria has signed IPPAs with the United Kingdom, France, Netherlands, Pakistan, and Canada, among others, with the aim of replicating the assurances in the NIPC Act in each country that is a party to the IPPA. Most Favored Nation (MFN) clauses in some IPPAs further guarantee non-discriminatory treatment compared to investors from other countries.

• International Treaties and Conventions

Nigeria is a signatory to several bilateral and multilateral treaties, trade agreements, and conventions which seek to encourage and protect foreign investments in Nigeria. Some of these include the Convention for the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), and the United Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), among others.

_{110. Constitution of the Federal Republic of Nigeria 1999 (as amended) 1999 CONSTITUTION OF THE FRN.pdf (nhrc.gov.ng)}

_{111. NIPC Act 2004 NIPC-ACT.pdf}

_{112. ISA 2007 The Securities and Exchange Commission, Nigeria}

_{113. FEMMP Act Foreign Exchange (Monitoring and Miscellaneous Provisions) Act (fmiti.gov.ng)}

_{114. Arbitration and Mediation Act 2023 Arbitration-and-Mediation-Act-1.pdf (sabilaw.org)}

_{115. Customs and Excise Management Act (CEMA) 2004 https://nigeriatradeportal.fmiti.gov.ng/media/CEMA%20ACT.pdf}

_{116. Nigerian Export and Processing Zone Authority (NEPZA) Act N107.pdf (placng.org)}

_{117. Public Procurement Act 2007 public procurement act 2007 f (bpp.gov.ng)}

_{118. Industrial Development Income Tax Act industrial-development-income-tax-relief-act.pdf (sac.com.ng)}

_{119. Capital Gains Tax Act Capital-Gains-Tax-Act.pdf (firs.gov.ng)}

_{120. Standard Organization of Nigeria Act S9.pdf (placng.org)}

_{121. Nigerian Customs Servicea Act 2023 E:\ADEX\ADENIJI\ACT 2\NIGERIA C (customs.gov.ng)}

_{122. Nigerian Maritime Administration and Safety Agency (NIMASA) Act}

_{123. Nigerian Ports Authority Act}

_{124. African Continental Free Trade Agreement (AfCFTA) 36437-treaty-consolidated_text_on_cfta_-_en.pdf (au.int)}

‍

a) Environmental impact assessment law

b) Relevant consultation law such as public participation in environmental decision making.

In addition to the laws and regulations discussed in Section 6, 7 and 8 above, the laws highlighted below directly impact on the management and protection of Nigeria’s natural resources.

1. Environmental Impact Assessment Act 1992¹²⁵ and Environmental Impact Assessment Procedural Guidelines¹²⁶: please refer to Sections 6, 8 and 10 above for information on this act and guidelines with regards to environmental impact assessment.

2. Land Use Act 1978¹²⁷: please refer to Section 10 above for information on this Act with regards to the regulation of natural resource management and protection in Nigeria.

3. Niger-Delta Development Commission (Establishment etc.) Act 2000¹²⁸: establishes the Niger-Delta Development Commission which is tasked with monitoring, assessing, and implementing of developmental activities and the mitigation of environmental degradation in the Niger Delta, Nigeria’s oil-rich region.

4. Petroleum Industry Act 2021 (PIA¹²⁹): please refer to Section 10 above for information on this act with regards to environmental impact assessment and safeguards.

5. Guidelines for the Award and Operations of Marginal Fields in Nigeria 2020¹³⁰: provides that an environmental impact assessment and other relevant studies should be conducted from the commencement of marginal field development.

6. Environmental Guidelines and Standards for the Petroleum Industry in Nigeria 2018¹³¹: establishes guidelines and standards for the Environmental Quality Control of the Petroleum Industry considering existing local conditions and planned monitoring programmes.

7. Guidelines for the Design, Construction, Operation and Maintenance of Oil and Gas Pipeline Systems in Nigeria 2021¹³²: establishes guidelines and standards for the design, construction, operation and maintenance of oil and gas pipeline systems in Nigeria and the impact on the environment.

8. Safety Case Guidelines for Oil and Gas Facilities in Nigeria 2020¹³³: section 4.3 requires the oil and gas facility operator to consider the interaction between the facility and its surroundings including the natural environment.

9. Nigerian Minerals and Mining Act¹³⁴: regulates the exploration and exploitation of solid minerals in Nigeria. Section 111 provides that the holder of a mineral title shall have regard to the effect of the mining operations on the environment and take steps to prevent pollution of the environment. Section 118 provides that the holder of a mineral title shall minimize, mitigate, and manage the environmental impact resulting from their activities. Section 119 provides that a holder of an Exploration Licence, Small-scale Mining Lease, Mining Lease, Quarry Lease and Water Use Permit shall conduct environmental impact assessments on their operations.

10. Nigerian Minerals and Mining Regulations 2011¹³⁵: Section 159 provides that any holder of an exploration licence (involving trenching, pitting, and drilling), small scale mining lease, mining lease, quarry lease and water use permit shall submit to the Mines Environmental Compliance Department an environmental impact assessment statement covering the mineral title area.

Public Participation Environmental Decision-Making

As addressed in Section 10 above, the public can participate in environmental decision-making through public consultations, community engagement, and consultation exercises.

_{125. Environmental Impact Assessment Act (ead.gov.ng)}

_{126. EIA Procedural Guidelines EIA-Procedural-Guideline.pdf (ead.gov.ng)}

_{127. LAND USE ACT.pdf (acanigeria.com)}

_{128. Niger-Delta Development Commission Act (fao.org)}

_{129. Petroleum Industry Act 2021 (nuprc.gov.ng)}

_{130. Guidelines for the Award and Operations of Marginal Fields in Nigeria 2020.pdf}

_{131. Environmental Guidelines and Standards for the Petroleum Industry in Nigeria 2018}

_{132. Guidelines for the Design, Construction, Operation and Maintenance of Oil and Gas Pipeline Systems in Nigeria 2021.pdf}

_{133. Safety Case Guidelines for Oil and Gas Facilities in Nigeria 2020.pdf}

_{134. Nigerian Minerals and Mining Act.pdf}

_{135. Nigerian Minerals and Mining Regulations 2011.pdf}

‍

a) Consultation and engagement

b) Public participation

c) Community grievance mechanisms

Some of the laws highlighted in Section 12 directly provide a framework for consultation and engagement, and community grievance mechanisms. Also, as addressed in Section 10 above, community engagement and consultation can be embedded into natural resource exploitation contracts.

1. Petroleum Industry Act 2021¹³⁶

• Sections 235-257 of the PIA provide for the matters affecting the development of host communities in or around the area of operation of a petroleum prospecting licensee or petroleum mining lease holder, or such other communities determined as host communities under the PIA.

• Section 103 of the PIA provides that entities licensed to undertake petroleum operations (“licensee”), or holders of a petroleum mining lease (“lessee”) are required to contribute to a fund for the rehabilitation or management of negative environmental impact with respect to their licence or lease.

• Under Section 103(4) these entities are expected to undertake the rehabilitation and management themselves, and where they fail to do so, the funds they have contributed to the environmental remediation fund will be applied for that purpose.

• Section 103(5) provides that a licensee and/or lessee are required to assess their environmental liability annually and increase their financial contribution to the fund. Where the contribution is not satisfactory to the Nigerian Upstream Petroleum Regulatory Commission or the Nigerian Midstream and Downstream Petroleum Regulatory Authority, either body may appoint an independent assessor to determine the financial contribution to be made by the licensee and/or lessee.

2. Nigeria Upstream Petroleum Host Communities Development Regulations 2022¹³⁷: provides for the contribution to a fund in favour of host communities by holders of a licence or lease engaged in upstream petroleum operations. The regulations also prescribe a grievance solution mechanism to settle disputes between host communities and settlors.

3. Upstream Petroleum Sector Code of Conduct and Compliance Regulations 2023¹³⁸: Section 7 provides for the referral by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) of disputes involving host communities to the Upstream Petroleum Business Investment Mediation Centre.

4. Midstream And Downstream Decommissioning and Abandonment Regulations, 2023¹³⁹: Section 15 provides that the communities affected by the activities of a licensee under a planned decommissioning and abandonment programme should be consulted by the licensee prior to the submission of an application for the programme.

5. National Oil Spill Detection and Response Agency ("NOSDRA") (Establishment) Act¹⁴⁰: establishes NOSDRA and gives the Agency the core responsibility of detecting and responding to all oil spillages in Nigeria. The Act mandates the Agency to coordinate and implement the National Oil Spill Contingency Plan for Nigeria, and to monitor, assist, and direct responses and resources to save lives, protect the threatened environment, and clean up impacted sites.¹⁴¹

6. National Oil Spill Contingency Plan ("NOSCP") for Nigeria¹⁴²: outlines the roles of key government ministries, departments, and agencies in responding to the needs of affected communities in the event of an oil spillage.

7. Nigerian Minerals and Mining Act¹⁴³: section 116 provides that the holders of a Mining Lease, Small scale Mining Lease or Quarry Lease shall, prior to the commencement of any development activity within the lease area, enter an agreement with the community to outline where the operations will be conducted, the transfer of social and economic benefits to the community and other relevant issues.

8. Nigerian Minerals and Mining Regulations 2011¹⁴⁴: section 162 provides for compensation by a mineral title holder to the occupier or owner of land, owner of any crop, economic tree, building or work which is damaged or destroyed in the course of mining operations after due valuation by a government approved valuer.

9. Guidelines for the Production of Community Development Agreement in the Solid Mineral Sector 2023: please refer to section 10 above for information on this guideline with regards to community development agreements.

_{136. Petroleum Industry Act 2021 (nuprc.gov.ng)}

_{137. Nigeria Upstream Petroleum Host Communities Development Regulations 2022 – Nigerian Upstream Petroleum Regulatory Commission (nuprc.gov.ng)}

_{138. Nigeria-Upstream-Petroleum-Sector-Code-of-Conduct-Regulations.pdf (nuprc.gov.ng)}

_{139. Midstream and Downstream Decommissioning and Abandonement}

_{140. National Oil Spill Detection and Response Agency (Establishment) Act https://faolex.fao.org/docs/pdf/nig124170.pdf}

_{141. Section 5, National Oil Spill Detection and Response Agency (NOSDRA) (Establishment) Act}

_{142. National Oil Spill Contingency Plan (NOSCP) for Nigeria (nosdra.gov.ng)}

_{143. Nigerian Minerals and Mining Act.pdf}

_{144. Nigerian Minerals and Mining Regulations 2011.pdf}

_‍

1. Constitution of the Federal Republic of Nigeria 1999¹⁴⁵:

Section 20 provides that the State shall protect and improve the environment and safeguard the water, air and land, forest, and wildlife of Nigeria.

2. National Environmental Standards and Regulations Enforcement Agency (Establishment) Act 2018¹⁴⁶: establishes the National Environmental Standards and Regulations Enforcement Agency (NESREA) which is responsible for the protection and development of the environment, biodiversity conservation and sustainable development of Nigeria’s natural resources in general.

• Section 20 provides that NESREA shall make regulations, set specifications and standards to protect and enhance Nigeria’s air resources, promote public health or welfare and the natural development of the nation’s human, animal, marine, or plant life.

• Section 21 provides that NESREA shall study the effects of activities on the stratosphere and how to control such activity.

• Section 23 provides that NESREA shall make regulations to protect public health or welfare and enhance the quality of water.

• Section 24 provides that NESREA shall review effluent limitations for existing point sources and make regulations on effluent limitations for the protection of human, animal, marine and plant life.

3. National Environmental (Watershed, Mountainous, Hilly and Catchments Areas) Regulations 2009¹⁴⁷: ensures good land management practices with respect to watersheds, mountainous, hilly and catchment areas.

4. National Environmental (Surface and Groundwater Quality Control) Regulations 2011¹⁴⁸: aims to restore, enhance, and preserve the physical, chemical, and biological integrity of the nation’s surface waters, and to maintain existing water uses.

5. National Environmental (Control of Alien and Invasive Species) Regulations 2013¹⁴⁹: aims to prevent the decline, minimize the modification and destruction of ecosystem, economy and human health caused by Alien and invasive species.

6. National Environmental (Air Quality Control) Regulations 2021¹⁵⁰: provide for improved control of the nation’s air quality to such an extent that would enhance the protection of flora and fauna, human health and other resources affected by air quality deteriorations.

7. National Environmental (Control of Charcoal Production and Export) Regulations 2014¹⁵¹: aims to protect Nigeria's ecosystem from further depletion arising from charcoal production and handling, including its export, and in particular to regulate the felling of trees for charcoal production.

8. National Environmental (Control of Bush/Forest Fire and Open Burning) Regulations 2011¹⁵²: regulates to prevent and minimize the destruction of the ecosystem through the emission of hazardous air pollutants.

9. National Environmental (Protection of Endangered Species in International Trade) Regulations 2011¹⁵³: this regulation seeks to protect species of endangered wildlife from extinction through the prohibition of trade, importation, and other forms of exploitation.

10. National Environmental (Dam and Reservoirs) Regulations 2014 (pursuant to the NESREA Act)¹⁵⁴: aims to control the effects of Dams and Reservoirs on the environment and human health as well as reduce or minimize environmental hazards and disasters such as dam break, sediment load and dam water releases causing downstream flooding and erosion.

11. Nigerian Urban and Regional Planning Act¹⁵⁵: Section 72 provides for the preservation of existing trees and or planting of new trees.

12. Sea Fisheries Act¹⁵⁶: provides for the control, regulation, and protection of sea fisheries in the territorial waters of Nigeria.

13. Sea Fisheries (Fishing) Regulations¹⁵⁷: provides rules for fishing in marine waters, the landing of fish and the export of fish.

14. National Park Service Act¹⁵⁸: provides for the establishment of the National Park Service responsible for the preservation, enhancement and protection of wild animals and plants and other vegetation in National Parks.

15. Exclusive Economic Zone Act¹⁵⁹: provides for the exploration and exploitation, conserving and managing the natural resources (minerals, living species, etc) of the seabed, subsoil and superjacent water of the exclusive zone vested in the Federal Republic of Nigeria.

16. Endangered Species (Control of International Trade and Traffic) Act¹⁶⁰: provides for the conservation and management of Nigeria’s wildlife and the protection of certain species in danger of extinction as a result of over‐exploitation, as required under certain international treaties to which Nigeria is a signatory.

17. Inland Fisheries Act¹⁶¹: provides for the licensing of fishing craft and the regulation of fishing on the inland waters of Nigeria and for matters connected therewith.

18. Other conservation and protection of nature and biodiversity laws are provided in section 6 and 8 above, highlighting the protection of wetlands, genetic sources and threatened species, coastal and marine environment.

_{145. 1999-CONSTITUTION-OF-THE-FRN.pdf (csj-ng.org)}

_{146. NESREA_Ammended_Act_2018.pdf amended by National Environmental Standards and Regulations Enforcement Agency (Establishment) Act (nesrea.gov.ng)}

_{147. Watershed_Mountainous_Hilly_and_Catchment_Areas_ Regulations 2009.pdf (nesrea.gov.ng)}

_{148. Surface_and_Groundwater_Quality_Control_Regulation 2011.pdf (nesrea.gov.ng)}

_{149. National Environmental Control of Alien and Invasive Species Regulations.pdf}

_{150. Airquality_Regulation.pdf (nesrea.gov.ng)}

_{151. Control_of_Charcoal_Production_and_Export_Regulation.pdf (nesrea.gov.ng)}

_{152. National Environmental (Control of Bush/Forest Fire and Open Burning) Regulations 2011.pdf}

_{153. National Environmental (Protection of Endangered Species in International Trade) Regulations 2011.pdf}

_{154. National Environmental (Dam and Reservoirs) Regulations 2014.pdf}

_{155. Nigerian Urban and Regional Planning Act.pdf}

_{156. Sea Fisheries Act.pdf}

_{157. Sea Fisheries (Fishing) Regulations.pdf}

_{158. National Park Service Act.pdf}

_{159. Exclusive Economic Zone Act.pdf}

_{160. Endangered Species (Control of International Trade and Traffic) Act.pdf}

_{161. Inland Fisheries Act.pdf}

‍

1. Harmful Waste (Special Criminal Provisions) Act¹⁶²: prohibits the carrying, depositing, and dumping of harmful waste on any land, territorial waters and matters relating thereto.

2. Petroleum Industry Act¹⁶³: section 104 and 105 prohibit the flaring or venting of natural gas and sets penalties for doing so without authorization.

3. National Oil Spill Detection and Response Agency ("NOSDRA") (Establishment) Act¹⁶⁴

As stated in Section 13 above, the Act establishes NOSDRA to detect and respond to all oil spillages in Nigeria.

4. Oil in Navigable Waters Act¹⁶⁵: addresses the discharge of oil from ships into the waters of Nigeria and sets penalties for engaging in such activity in Section 6.

5. Upstream Petroleum Safety Regulations 2022¹⁶⁶: provides for the safety standards to be observed during upstream petroleum operations. In particular, section 32(iv) states that every permanently placed bulk storage tank containing liquid petroleum should have provisions made for containing any leakage to prevent contamination of water by oil for tanks installed in marine environments. It also prescribes penalties for non-compliance in sections 62 and 86.

6. Midstream and Downstream Petroleum Safety Regulations 2023¹⁶⁷: provides for the safety standards to be observed during midstream and downstream petroleum operations. In particular, Section 11(jj)(iv) states that provisions should be made for containing any leakage to prevent contamination of the environment by the product or content of a tank. It also prescribes penalties for non-compliance in section 53.

7. Nuclear Safety and Radiation Protection Act¹⁶⁸: this law establishes the Nigerian Nuclear Regulatory Authority. It also provides for the control of ionizing radiation and the exploration etc. of materials containing radioactive substances and the packing and transportation of radioactive material and radioactive waste. In Sections 43 and 45, it also outlines liability for damages resulting in any incident or accident that occurs during the transportation or storage of radioactive material and waste.

8. Nigerian Minerals and Mining Act¹⁶⁹: section 170 provides that the holder of a mineral title is responsible for paying reasonable compensation for any damage done to the surface of the land on which exploration or mining occurs, and for any crop, economic trees, building or work damaged, removed, or destroyed. Sections 114 and 115 also provides that the grantee of a mining lease should restore any area in respect of which mining operations has been done, is being done, or is to be done.

9. Nigerian Minerals and Mining Regulations 2011¹⁷⁰: Section 161 provides for a routine audit to be done on the impact on the environment of any exploration, quarrying, or mining operations. Also, as stated in Section 13 above, section 162 of this regulation provides for payment of compensation where there is damage or destruction caused by mining operations.

_{162. Harmful Waste (Special Criminal Provisions) Act (fao.org)}

_{163. Petroleum Industry Act 2021 (nuprc.gov.ng)}

_{164. National Oil Spill Detection and Response Agency (Establishment) Act https://faolex.fao.org/docs/pdf/nig124170.pdf}

_{165. Oil in Navigable Waters Act.pdf}

_{166. Upstream Petroleum Safety Regulations 2022.pdf}

_{167. Midstream and Downstream Petroleum Safety Regulations 2023}

_{168. Nuclear Safety and Radiation Protection Act.pdf}

_{169. Nigerian Minerals and Mining Act.pdf}

_{170. Nigerian Minerals and Mining Regulations 2011.pdf}

‍

1. Companies and Allied Matters Act 2020¹⁷¹: regulates all affairs of corporate entities in Nigeria by establishing rules on the formation of corporate entities and the ways they conduct their administrative activities for adherence to corporate governance ideals and best practices.

• Section 154 provides that a company limited by shares is required to file a return on allotment to the Corporate Affairs Commission (“CAC”) within one month of making any allotment of its shares.

• Sections 417 and 421 provide that a company limited by shares or limited by guarantee is required to file an annual return to the CAC once at least in every year not later than 42 days after the annual general meeting for the year.

• Section 773 provides that a limited liability partnership is required to file an annual return with the CAC within 60 days of closure of its financial year.

• Section 822 provides that every individual, firm, or corporation carrying on business under a registered business name is required to file returns to the CAC not later than the 30th day of June in each year, except the calendar year in which the business was registered.

• Section 848 provides that the trustees of an association registered as an Incorporated Trustees are required to file returns to the CAC not earlier than 30th June or later than 31st December each year (other than the year in which it is incorporated).

2. Nigerian Code of Corporate Governance 2018¹⁷²: establishes a guidance code for corporate governance standards and best practices in Nigerian companies to improve trust and confidence in Nigerian corporate entities, the Nigerian economy and attract trade and investment. The code addresses issues such as the composition of a Board of Directors and officers of the Board, assurance, relationship with shareholders, business conduct and ethics, sustainability, and transparency.

3. Code of Corporate Governance for Public Companies in Nigeria 2011¹⁷³: establishes a guidance code for corporate governance standards and best practices for all public companies whose securities are listed on a recognized securities exchange in Nigeria, all companies seeking to raise funds from the capital market through the issuance of securities or seeking listing by introduction, and all other public companies. The code addresses issues such as the composition of a Board of Directors, relationship with shareholders and other stakeholders, risk management and audit, accountability and reporting, communication, and code of ethics.

4. Freedom of Information Act 2011¹⁷⁴: provides for the free availability of public records and information, the protection of personal privacy, and protection of serving public officers from adverse consequences of disclosing certain kinds of official information without authorization.

5. Environmental Impact Assessment Act¹⁷⁵: section 57 provides for the establishment of a public registry to give public access to environmental assessments conducted for projects.

6. Petroleum Industry Act 2021¹⁷⁶: section 227 provides for the non-disclosure of confidential or other information and sets a penalty for non-compliance.

7. Gas Trading and Settlement Regulations 2023¹⁷⁷: section 23 sets disclosure requirements and corporate governance norms that apply to gas exchanges and clearing houses.

8. Gas Pricing and Domestic Demand Regulations 2023¹⁷⁸: section 15 provides that a producer, licensee, or permit holder shall on the directive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (“NMDPRA”) provide information or data on gas volumes, gas pricing information and any other relevant information or data in the manner required by the NMDPRA and within 10 working days from the date the directive was given.

9. Petroleum Measurement Regulations 2023¹⁷⁹: section 4 provides that a licensee or permit holder shall provide information or data to the NMDPRA following its directive.

10. Mainstream and Downstream Petroleum Operations Regulations 2023¹⁸⁰: section 6 provides that the NMDPRA may direct a person to provide information or data on any midstream and downstream operations and that the person shall comply with the directive in the prescribed manner within the timeframe stipulated in the direction.

11. Reporting Compliance Regulations 2009¹⁸¹: outlines the mandatory reporting requirements for entities within the Nigerian electricity industry. They apply to all licensees, permit holders, and registered participants in the Nigerian electricity market including generating companies, transmission and distribution companies, electricity trading companies, and large consumers.

12. Uniform System of Accounts Regulations 2018¹⁸²: the main objective of these Regulations is the implementation of the Uniform System of Accounts Guidelines 2014 on the generation of all accounting reports required by the Commission based on information extracted from the general and subsidiary ledgers of Licensees.

13. Investments and Securities Act 2007 ¹⁸³ and Securities and Exchange Commission Rules and Regulations 2013¹⁸⁴: the act, rules and regulations provide reporting and disclosure requirements to be done often on a periodic basis by capital market stakeholders and companies.

14. Nigerian Exchange Group Rulebook 2015 (as amended)¹⁸⁵:

Rule 7.4(a) of the rulebook issued by the Nigeria Exchange Group (“NGX”) (previously known as the Nigerian Stock Exchange) provides that all dealing members on the Nigerian Exchange are required to submit their quarterly and annual financial statements, as well as any other required periodic reporting to the Nigerian Exchange, within the stipulated days under the rulebook.

15. NGX Sustainability Disclosure Guidelines 2018¹⁸⁶

• The Guidelines provide a step-by-step approach on integrating economic, environmental, social and governance sustainability in the business practices and reporting systems of organizations.

• The Guidelines also require companies listed on the Nigerian Exchange to disclose their environmental impacts, including greenhouse gas emissions, resource use, and waste generation. This transparency allows stakeholders to assess companies’ environmental performance and hold them accountable for their actions.

_{171. Companies and Allied Matters Act 2020 (cac.gov.ng)}

_{172. Nigerian_Code_of_Corp._Governance_2018.pdf (corpgovnigeria.org)}

_{173. Code of Corporate Governance for Public Companies in Nigeria 2011}

_{174. Freedom of Information Act (cbn.gov.ng)}

_{175. Environmental Impact Assessment Act (ead.gov.ng)}

_{176. Petroleum Industry Act 2021 (nuprc.gov.ng)}

_{177. Gas Trading and Settlement Regulations 2023}

_{178. Gas Pricing and Domestic Demand Regulations 2023}

_{179. Petroleum Measurement Regulations 2023}

_{180. Mainstream and Downstream Petroleum Operations Regulations 2023}

_{181. Reporting+Compliance+Regulations.pdf}

_{182. Uniform+System+of+Accounts+Regulations+2018.pdf}

_{183. Investments and Securities Act 2007}

_{184. Securities and Exchange Commission Rules and Regulations}

_{185. https://doclib.ngxgroup.com/regulation-site/Documents/The NSE RuleBook 2015.pdf}

_{186. NGX Sustainability Disclosure Guidelines 2018 Sustainability Disclosure Guidelines.pdf (ngxgroup.com)}

‍

a) Duty of compliance

b) Reporting and monitoring requirements

c) Record keeping requirements

d) Inspections

e) Administrative enforcement.

Generally, enforcement and monitoring of the implementation of environmental protection are provided for under the respective environmental legislations, with penalties for non-compliance typically indicated. In addition to some of the laws that we have provided under Sections 6, 7, and 8 above, we highlight some specific provisions relating to compliance, reporting, record keeping, inspections and enforcement.

1. National Environmental Standards and Regulations Enforcement Agency (Establishment) Act 2007¹⁸⁷:

• Section 7 provides that the National Environmental Standards and Regulations Enforcement Agency (“NESREA”) is responsible for enforcing compliance with the laws, regulations, guidelines, policies, and standards on:

a. environmental matters,

b. water quality,

c. environmental health sanitation,

d. the ecosystem, biodiversity conservation and the development of Nigeria’s natural resources,

e. sound chemical management, safe use of pesticides, and disposal of spent packages,

f. the importation, exportation, production, distribution, storage, sale, use, handling and disposal of hazardous chemicals and waste other than in the oil and gas sector, and

g. standards on noise, air, land, seas, oceans, and other water bodies other than in the oil and gas sector.

• Section 7 also provides that the NESREA is responsible for:

a. enforcing environmental control measures through registration, licensing and permitting systems other than in the oil and gas sector.

b. reviewing and certifying environmental audits and establishing a data bank on the regulatory and enforcement mechanisms of environmental standards other than in the oil and gas sector.

• Section 8 empowers the NESREA to develop environmental monitoring networks, and compile and synthesize environmental data from all sectors other than in the oil and gas sector at national and international levels.

• Section 20 provides that the NESREA may establish monitoring stations or networks to locate sources of atmospheric pollution and determine their actual or potential danger.

2. Nigerian Minerals and Mining Act 2007¹⁸⁸:

• Section 4 provides that the Minister responsible for solid minerals development is responsible for:

a. monitoring compliance with community development agreements by industry operators.

b. establishing the procedure for monitoring developments in the solid minerals sector.

c. keeping records of all enterprises and companies established and pursuing activities in mineral resources and allied projects.

• Section 5(5)I provides that the Mining Cadastre Office is responsible for maintaining a chronological record of all applications for a mineral title.

• Section 43(1) provides that any person involved in the reconnaissance, exploration, or exploitation of mineral resources under a mineral title or further to the authorization of the Minister responsible for solid minerals development is required to, amongst other things:

a. keep correct plans of exploration or mining operations conducted within the mineral title area.

b. keep correct records of every mineral found and ore reserve calculated on the area of his mineral title lease.

c. supply to the Mining Cadastre Office copies of the plans and records at such times and periods and in such manner as the Mining Cadastre Office may demand.

• Section 17(b) provides that the Mines Inspectorate Department is responsible for supervising and enforcing compliance by mineral titleholders with all mine health and safety regulations prescribed under the Act and any other law in force.

• Section 18(b) provides that the Mines Environmental Compliance Department is responsible for monitoring and enforcing compliance by holders of mineral title with all environmental requirements and obligations established pursuant to this Act, its regulations and by any other law in force.

• Section 56 provides that holders of a reconnaissance permit are required to submit information and periodical reports as may be prescribed by relevant departments of the ministry.

• Section 61 provides that holders of an exploration licence are required to submit information and such periodical reports as may be prescribed in the Nigerian Minerals and Mining Regulations 2011.

• Section 70 provides that holders of a mining lease are required to submit information and such periodical reports as may be prescribed in the Nigerian Minerals and Mining Regulations 2011.

• Section 84 provides that the holder of a mining lease or licence shall report an accident involving loss of life or serious injury to a person that occurs in any mine or in connection with the mining operations conducted under its lease, temporary title or licence granted under the Act.

3. Nigerian Minerals and Mining Regulations 2011¹⁸⁹:

• Section 121, 122 and 156 provide for the inspection of mining operations and exploration activities, and of the mining environment.

• Section 215 provides for a mineral title holder to issue a report on a decommissioned classified dump to the Mines Environmental Compliance Department.

4. National Oil Spill Detection and Response Agency (Establishment) Act 2006¹⁹⁰: Section 7 provides that the National Oil Spill Detection Response Agency (“NOSDRA”) is responsible for, amongst other duties, undertaking surveillance, reporting, alerting and other response activities as they relate to oil spillages.

5. Petroleum Industry Act 2021¹⁹¹

• Section 7 outlines the enforcement and monitoring functions of the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”) with regards to upstream petroleum operations.

• Section 10 outlines the powers of the NUPRC which includes the inspection of information and data, and access to plants and stations to inspect operations.

• Section 26 provides for the special powers of the NUPRC with regards to conducting inspections.

• Section 49 provides for the special powers of the NMDPRA with regards to conducting inspections.

• Section 32 outlines the enforcement and monitoring functions of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (“NMDPRA”) with regards to midstream and downstream petroleum operations.

• Section 217 provides for the issuance of an enforcement order by the NUPRC or the NMDPRA to the holder of a lease, licence or permit for contravening or the likelihood of contravening any conditions of the lease, licence, or permit. The section also sets out the enforcement powers of the NUPRC and NMDPRA and provides that any dispute between either the NUPRC or the NMDPRA and a lessee, licensee or permit holder shall be settled by the Federal High Court.

• Section 292 sets out the penalty for non-payment of tax and enforcement of payment.

6. NDMPRA Midstream and Downstream Penalties and Enforcement Mechanisms Regulations 2023¹⁹²: these Regulations provide a framework for the application, administration, and enforcement of penalties in midstream and downstream petroleum operations. They also provide instruments and notices for the enforcement of penalties.

_{185. https://doclib.ngxgroup.com/regulation-site/Documents/The NSE RuleBook 2015.pdf}

_{186. NGX Sustainability Disclosure Guidelines 2018 Sustainability Disclosure Guidelines.pdf (ngxgroup.com)}

_{187. NESREA_Ammended_Act_2018.pdf amended by National Environmental Standards and Regulations Enforcement Agency (Establishment) Act (nesrea.gov.ng)}

_{188. Nigerian Minerals and Mining Act.pdf}

_{189. Nigerian Minerals and Mining Regulations 2011.pdf}

_{190. National Oil Spill Detection and Response Agency (Establishment) Act 2006.pdf}

_{191. Petroleum Industry Act 2021 (nuprc.gov.ng)}

_{192. Midstream and Downstream Penalties and Enforcement Mechanisms Regulations 2023.pdf}

‍

1. Exclusive Economic Zone Act 1978¹⁹³: regulates issues surrounding the Exclusive Economic Zone which is an area extending from the external limits of the territorial waters of Nigeria up to a distance of 200 nautical miles from the baseline from which the breadth of the territorial waters of Nigeria is measured.

• Section 2 provides that the Federal Government of Nigeria or such Minister or agency as the Government may designate has the exclusive rights to the exploration and exploitation of the natural resources of the seabed, subsoil, and superjacent waters of the Exclusive Zone.

• Section 3 provides that the appropriate authority authorized to explore, exploit, conserve and manage the natural resources and other activities for the Exclusive Zone is authorized to erect artificial islands, installations, and structures in furtherance of that purpose and may prohibit ships from entering the area without its consent.

2. Nigerian Minerals and Mining Act 2007¹⁹⁴:

• Section 22 provides that the use of land for mining operations has a priority over other uses of land and such activity constitutes an overriding public interest.

• Section 46 provides that the right to search for or exploit mineral resources is obtained through one of the following mineral titles in the form of: a reconnaissance permit, exploration licence, small-scale mining lease, mining lease, quarry lease and a water use permit. Any mineral title issued under the Act is also subject to conditions prescribed in the licence or lease or by regulation made under the Act.

3. Nigerian Minerals and Mining Regulations 2011¹⁹⁵: section 22 outlines the obligations of the mineral title holders.

4. Petroleum Industry Act 2021¹⁹⁶

Upstream Licences and Leases

• Section 70 provides that the following licences and leases are required to undergo the following upstream petroleum operations:

a. A petroleum exploration licence for the carrying out of petroleum exploration operations on a non-exclusive basis.

b. A petroleum prospecting licence to drill and appraise wells, conduct test production on an exclusive basis, and to carry out petroleum exploration operations on a non-exclusive basis.

c. A petroleum mining lease to win, work, carry away and dispose of crude oil, condensates, and natural gas on an exclusive basis. The lease is also required for drill exploration, appraisal of wells, and the carrying out of petroleum exploration operations on a non-exclusive basis.

Downstream Licences, Permits and Authorisations

• Section 125 provides that the issuance of a licence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (“NMDPRA”) is required to undertake midstream and downstream gas operations.

• Section 111 provides for the grant of a licence or permit for midstream or downstream petroleum operations and Section 114 outlines the conditions in a licence or permit, and the obligations of the licensee or permit holder.

• Sections 129–201 of the PIA outlines the specific requirements for obtaining different kinds of licenses and permits required to operate in the Nigerian downstream sector, ranging from gas processing, bulk gas storage, gas transportation pipeline and network operations, wholesale gas and petroleum liquids supply, retail gas supply, gas and petroleum liquids distribution, crude oil refining, midstream and downstream petroleum liquids operations, bulk petroleum liquids storage, and transportation pipeline and network operations. The sections also cover the general duties and obligations of a regulated operator in the downstream sector.

_{193. Exclusive Economic Zone Act 1978}

_{194. Nigerian Minerals and Mining Act.pdf}

_{195. Nigerian Minerals and Mining Regulations 2011.pdf}

_{196. Petroleum Industry Act 2021 (nuprc.gov.ng)}

_‍

a) Justiciability

b) Ripeness

c) Exhaustion

d) Finality

e) Standing

f) Political questions

g) Advisory opinions

Nigeria’s legal system employs a diverse range of sanctions to enforce criminal, civil, and administrative laws. In the criminal justice system, sanctions aim to deter future offenses, rehabilitate offenders, and protect society. These can range from fines and community service to imprisonment and, in the most serious cases, capital punishment.

Civil sanctions, on the other hand, focus on compensating victims for wrongs suffered and resolving disputes. They encompass remedies like damages, injunctions, and restitution orders.

Additionally, administrative sanctions, imposed by regulatory bodies, address non-criminal violations of specific laws or regulations. These may involve license suspensions, fines, or corrective actions.

There could also be an interplay between these various sanctions in certain situations. For instance, a single act may trigger both criminal and civil proceedings, resulting in separate sanctions for the offense itself and for the harm caused to the victim. Similarly, administrative sanctions might be imposed alongside criminal or civil penalties, depending on the nature of the violation and the relevant regulatory body. Also, the specific application or severity of these sanctions can also vary considerably based on the nature of the offense, the offender's records, and the discretion of the judicial or administrative body involved.

Additionally, there are limitations that can prevent or hinder the enforcement actions in courts and tribunals including:

• Justiciability: Justiciability refers to the extent to which a matter is suitable for adjudication by a court. In Nigeria, the judiciary typically handles justiciable issues arising from criminal, civil, and administrative matters. However, certain issues, such as political questions or socioeconomic rights such as the rights to education, health, housing, food, work, social security, and a clean environment are not justiciable.

• Ripeness: Ripeness concerns the readiness of a case for adjudication. Nigerian courts may decline to hear a case if it is premature or if the issues have not fully developed, i.e. a cause of action has yet to arise. This principle ensures that legal disputes are adjudicated when they have reached a point where a decision is necessary.

• Exhaustion of Remedies: The principle of exhaustion requires litigants to pursue all available administrative remedies before seeking judicial intervention. This is particularly relevant in administrative matters where individuals or entities are expected to follow established procedures and exhaust administrative remedies before resorting to the courts.

• Finality: Courts generally only review final decisions of administrative bodies. Interlocutory decisions, or those that do not finally dispose of the matter, are not typically subject to judicial review unless they fall within specific exceptions (for example, decisions causing irreparable harm).

• Standing: To initiate a legal action, a party must demonstrate they have a "sufficient interest" in the outcome. This "standing" requirement ensures litigation involves those directly affected by the alleged legal violation. In Nigeria, standing rules for administrative challenges have evolved, with an increasingly flexible approach recognizing public interest concerns.

• Political Questions: The concept of political questions arises when issues involve matters exclusively within the domain of the political branches of government. Nigerian courts may refuse to adjudicate cases that are considered non-justiciable political questions, leaving such matters to the discretion of the executive or legislative branches.

• Advisory Opinions: Nigerian courts generally do not issue advisory opinions, as the legal system is designed for the resolution of actual disputes. Courts are more inclined to address concrete legal issues presented in the context of specific cases, rather than providing guidance on hypothetical situations.

‍

• The Labour Act 2004¹⁹⁷ is the principal legislation governing Nigerian labour law. It prescribes minimum terms and conditions of employment and address issues such as the contract of employment, wages and benefits, working conditions, discrimination and prohibited practices, occupational health and safety, as well as trade unions and industrial relations. It is noted that the Labour Act seems to have been primarily drafted in reference to blue-collar jobs, although its provisions are applicable to white-collar jobs as well.

• National Minimum Wage Act 2011¹⁹⁸: sets the minimum wage for different categories of workers across the country.

• Pensions Reform Act 2014¹⁹⁹: establishes mandatory pension contributions for both employers and employees. It also regulates the contributory pension scheme.

• Employee Compensation Act 2004²⁰⁰: regulates the payment of compensation to employees who suffer occupational diseases or sustain injuries arising from accidents in the workplace or during employment.

• Factories Act 2004²⁰¹: promotes the safety of workers and professionals exposed to occupational hazards. Under this Act, it is an offence to use unregistered premises for factory purposes. Section 13 empowers an inspector to take emergency measures or request that emergency measures be taken by a person qualified to do so in cases of pollution or any nuisance.

• Industrial Training Fund Act²⁰²: requires employers to contribute 1% of their annual payroll to the Industrial Training Fund created by the Act.

• Trade Unions Act²⁰³: regulates the organization of trade unions and their activities.

_{197. The Labour Act: Nigerian Labour Act.pdf}

_{198. National Minimum Wage Act 2011: National Minimum Wage Act 2019.pdf}

_{199. Pensions Reform Act 2014: Pension Reform Act 2014.pdf}

_{200. Employee Compensation Act 2004: Employee Compensation Act 2010.pdf}

_{201. Factories Act: Factories Act.pdf}

_{202. Industrial Training Fund Act: Industrial Training Fund Act 2011.pdf}

_{203. Trade Unions Act: Trade-Unions-Act-1973.pdf; Trade-Unions-Act-1973.pdf}

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Nigerian Energy Law can be divided into three key sectors, namely: Power, Oil and Gas, and Mining – with different legal frameworks applicable to each.

Power

• Electricity Act 2023: [Please see our analysis of the Electricity Act in Section 6 above.]

NERC Regulations

• Mini Grid Regulations 2023²⁰⁴: The regulations establish a clear framework for licensing, operating, and governing mini-grid developers, and to incentivize the use of renewable energy sources in mini-grids – ultimately contributing to climate mitigation efforts.

• Embedded Generation Regulations 2012²⁰⁵: these Regulations are made by the NERC to provide standard rules for embedded generation and distribution of electricity to ensure safe, secure, and efficient electricity supply. While the primary focus of the EG Regulations is on establishing the framework for connecting and managing embedded generation plants to the grid, embedded generation, particularly from renewable sources like solar and wind, can indirectly contribute to climate change mitigation by reducing reliance on fossil fuels for electricity generation.

Nigerian Electricity Management Service Agency ("NEMSA")

• NEMSA Act, 2015:²⁰⁶ under this Act, NEMSA is required to encourage the use of energy-efficient electrical equipment through standards and regulations. This reduces overall electricity consumption, leading to lower emissions from power generation. Also, NEMSA's technical regulations and approval processes for integrating renewable energy sources like solar and wind into the grid are crucial for facilitating the expansion of clean energy. This directly reduces greenhouse gas emissions from the electricity sector, mitigating climate change.

• NEMSA Guidelines for Inspection of Solar Mini-Grids in Nigeria²⁰⁷: The guidelines outline the application, inspection and certification procedures/processes and the documentation of solar mini-grids in Nigeria to achieve standardization of solar energy equipment in Nigeria. The use of renewable energy sources like solar reduces the country's reliance on fossil fuels, thereby contributing to climate adaptation and mitigation. By promoting the use of solar mini-grids, these guidelines indirectly contribute to these goals.

Oil and Gas

• Petroleum Industry Act ("PIA") 2021²⁰⁸: [Please see our analysis of the Petroleum Industry Act in Section 8 above.]

NMDPRA Regulations

• Midstream and Downstream Petroleum Operations Regulations 2023²⁰⁹: these Regulations apply to the operations of companies in the midstream and downstream petroleum sectors. They provide for the duration and renewal of licences, the prescribed duties of licensees, as well as requirements and prohibitions. Section 12 of the Regulations prohibits the discharge of petroleum, petroleum derivatives, petroleum liquids or petroleum products into Nigerian waters, contributing generally to climate mitigation efforts.

• Midstream and Downstream Decommissioning and Abandonment Regulations 2023²¹⁰: these Regulations regulate the decommissioning and abandonment activities of facilities in the Nigerian midstream and downstream petroleum industry. The proper decommissioning practices mandated by the Regulations can help minimize environmental damage caused by abandoned facilities, such as oil spills, gas leaks, and structural collapse. This reduces pollution in the air, water, and soil, protecting ecosystems and communities vulnerable to climate change impacts.

• Midstream and Downstream Petroleum Environmental Regulations 2023: these Regulations regulate, monitor and enforce health and environmental measures relating to midstream and downstream petroleum operations; and provide for environmental standards to be observed during midstream and downstream petroleum operations. Part VI of the Regulations is dedicated to climate change and addresses Green House Gas (GHG) management as well as the management of methane emission. Part IX covers emergency response and pollution abatement, providing remediation and restoration requirements for impacted areas, for the use of spill management and remediation chemicals or products, the liability and documentation of spills, as well as for the Spill or Release Contingency Planning (SRCP).

• Midstream Gas Flare Regulations 2023: the objectives of these Regulations are the reduction of the environmental and social impact caused by excessive flaring and venting of flare gas; protection of the environment; prevention of waste of natural resources; and to set criteria for gas flaring in midstream petroleum operations for safety purposes, which includes emergency shutdown with depressurization.

NUPRC Regulations

• Gas Flaring Venting and Methane Emissions (Prevention of Waste and Pollution) Regulations 2023: The objectives of the Regulations are to reduce the environmental and social impact associated with gas flaring and venting of natural gas and fugitive methane emissions into the atmosphere; preserve and protect the environment; prevent waste of natural resources, enhance energy transition in Nigeria; and create social and economic benefits from gas flaring and venting.

• Nigeria Upstream Petroleum Decommissioning and Abandonment Regulations 2023: these Regulations set the framework for the establishment and administration of a decommissioning and abandonment fund. They also ensure the decommissioning and abandonment of petroleum wells, installations, structures, utilities, plants and pipelines for upstream petroleum operations on land and offshore are conducted in accordance with good international petroleum industry practice.

Mining

• Constitution of the Federal Republic of Nigeria 1999: [Please see our analysis of the Constitution in Section 6 above.]

• Nigerian Minerals and Mining Act 2007: [Please see our analysis of the Minerals and Mining Act in Section 10 above.]

• Nigerian Minerals and Mining Regulations 2011: these Regulations provide detailed procedural and administrative guidelines for implementing the Mining Act. They also specify fees, forms, and timelines for applying for and obtaining mining licenses.

_{204. Mini Grid Regulations 2023.pdf}

_{205. NERC+(Embedded+Generation) +Regulations,+2012.pdf}

_{206. NEMSA ACT 2015.pdf}

_{207. NEMSA Procedure for Solar Mini Grid Inspection.pdf}

_{208. Petroleum Industry Act 2021: Petroleum Industry Act 2021.pdf}

_{209. Midstream and Downstream Petroleum Operations Regulations 2023: MIDSREAM-AND-DOWNSTREAM-PETROLEUM-OPERATIONS-REGULATIONS.pdf}

_{210. Midstream and Downstream Decommissioning and Abandonment Regulations 2023: Midstream and Downstream Decommissioning and Abandonment Regulations 2023.pdf}

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a) Annulment and cancellation of exploration or exploitation permits

b) Expropriation of property rights by the state

c) Lawsuits brought against projects

d) Types of ADR available

e) Transparency and corruption risk

f) Incorporate Transparency International ranking

• Annulment and Cancellation of Exploration or Exploitation Permits:

Annulment and cancellation of a permit can only be carried out with strict adherence to stipulated conditions and due process, laid down by law. For instance, the Petroleum Industry Act 2021 and the Minerals and Mining Act 2007 outline grounds for permit cancellation, including non-compliance with license terms, safety violations, or environmental damage. Revocation processes involve ministerial and regulatory bodies, with judicial avenues for appeal.

• Expropriation of Property Rights:

The Nigerian Constitution recognizes the right to private property but allows for compulsory acquisition in line with the law and provided adequate compensation is provided.

• Lawsuits Against Projects:

Environmental groups, local communities, and even competing interests within the industry can initiate lawsuits against extractive projects. These lawsuits can range from challenging environmental impact assessments to contesting mining licenses or alleging corruption. Federal or State High Courts have the jurisdiction to hear and determine cases involving project-related conflicts.

• Alternative Dispute Resolution (ADR):

Various ADR options, including arbitration and mediation, are available for resolving disputes outside of the traditional court system, as sanctioned under the Arbitration and Mediation Act, previously discussed in Section 11. As discussed previously, some sectoral laws also provide for community engagement and other traditional approaches towards dispute settlement.

• Transparency and Corruption Risk:

According to the Transparency International’s (TI) 2023 Corruption Perceptions Index, Nigeria ranks 145/180 in the world with a score of only 25 out of 100²¹¹, highlighting the need for increased transparency and accountability. Efforts have been made to improve on the transparency and corruption challenges in the legal and regulatory framework of Nigeria. For instance, the enactment of the Money Laundering (Prevention and Prohibition) Act, 2022 is aimed at improving the monitoring and detection of money laundering through the Nigerian financial and banking system.

_{211. https://www.transparency.org/en/countries/nigeria}

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The framework for the liability and compensation regime for the environmental duty of care, remediation and rehabilitation in Nigeria is established by several laws and regulations, including:

• Climate Change Act 2021²¹²: section 34(1) of the Act stipulates that any individual or entity, whether private or public, engaging in activities that hinder the progress of mitigation and adaptation measures outlined in the Act will be deemed to have committed an offense. Such offenders are liable to a penalty to be determined by the National Council on Climate Change. Furthermore, under Section 34(2) of the Act, when a court is presented with a case related to climate change or environmental issues, it has the authority to issue orders, including:

a. Preventing, stopping, or discontinuing any action that poses harm to the environment.

b. Compelling public officials to take necessary actions to prevent or halt activities harmful to the environment.

c. Granting compensation to individuals directly impacted by environmentally harmful actions.

• The National Environmental Standards and Regulations Enforcement Agency ("NESREA") Act 2007²¹³:

section 20 (3) of the NESREA Act prescribes a fine not of less than N200, 000 or imprisonment for a term not less than one year or both for a person who violates the regulations made pursuant to Section 20(1). Similarly, section 27 prohibits the discharge of hazardous substances without lawful authority into the environment. This offence is punishable under this section, with a fine not exceeding, N1,000,000 and an imprisonment term of 5 years.

In the case of a company, there is an additional fine of N50,000, for every day the offence persists. Establishing a remediation and rehabilitation regime, the Act imposes a duty on the Minister to prescribe (via regulations) any specific removal method, the financial responsibility level for owners or operators of vessels or notice and reporting requirements for onshore or offshore facilities.

• Environmental Impact Assessment Act of 1992 (EIA Act)²¹⁴: the EIA Act imposes an environmental duty of care on project developers by requiring the public or private sector of the economy not to undertake or authorize projects without prior consideration, at an early stage, of their environmental effects. Any person who fails to comply with the provisions of the Act is guilty of an offence and is liable on conviction in the case of an individual to a N100,000 fine or to five years' imprisonment, and in the case of a firm or corporation to a fine of not less than N50,000 and not more than N100,000.

• The Nigerian Urban and Regional Planning Act 2004²¹⁵: section 39 (7) provides that an application for land development would be rejected if such development would harm the environment or constitute a nuisance to the community. Section 59 also makes it an offence to disobey a stop-work order, and the resulting penalty is a fine not exceeding N10,000 and in the case of a company, a fine not exceeding N50,000.

• Harmful Waste (Special Criminal Provisions) Act 1988²¹⁶: section 6 provides for a punishment of life imprisonment for offenders as well as the forfeiture of land or anything used to commit the offence. Section 7 makes provision for the punishment accordingly, of any conniving, consenting or negligent officer where the offence is committed by a company. According to Section 8, an attempt to commit a crime under the Act is also punishable upon conviction by life imprisonment. Section 12 defines the civil liability of any offender. An offender would be liable to persons who have suffered injury as a result of the offending act. Similarly, by Section 11, an area or a site may be sealed up where the Minister for Environment has reasonable grounds to believe that such area or site is being or will or might be used directly or indirectly for the purpose of depositing or dumping any harmful waste.

• Oil in Navigable Waters Act 1968²¹⁷: section 4 established a reasonable duty of care regime by providing a defense

to potential offenders should they prove that the escape of the oil or mixture was not due to any want of reasonable care, and that as soon as practicable after the escape was discovered all reasonable steps were taken for stopping or

reducing it.

• Sea Fisheries Act 1992²¹⁸: the Sea Fisheries Act makes it illegal to take or harm fish within Nigerian waters by use of explosives, poisonous or noxious substances. Section 10(2) makes the use of such devices punishable with a fine of N50,000 or an imprisonment term of 2 years.

• Nuclear Safety and Radiation Protection Act 1995²¹⁹: under this Act, any person who commits an offence is, upon conviction, liable to pay a fine of not more than N1,000,000 for an individual and not more than N10,000,000 for a corporate body, or imprisonment for a minimum term of not less than two years, or both.

• Niger-Delta Development Commission ("NDDC") Act 2000²²⁰: section 7(1)(i) imposes a duty on the NDDC to liaise with oil and gas companies and advise stakeholders on the control of oil spillages, gas flaring and other related forms of environmental pollution.

• Criminal Code²²¹: the Criminal Code, applicable as a criminal law in Southern Nigeria, contains provisions for the prevention of public health hazards and for environmental protection. Sections 245-248 deal with offences ranging from water fouling to the use of noxious substances.

• Petroleum Refining Regulation 1974²²²: these Regulations make any contravention punishable with a fine of N100 or an imprisonment term of six months. Additionally, Regulation 38 provides that any unprogrammed spillage of crude oil, products or chemicals inside the refinery shall immediately be notified to the inspector.

• Mineral Oil Safety Regulations 1963²²³: these Regulations prescribe precautions to be taken in the production, loading, transfer, and storage of petroleum products to prevent environmental pollution. Failure to comply with any of the regulations invites a penalty of a fine not exceeding N100 or imprisonment not exceeding six months or both such fine and imprisonment.

• Petroleum (Transportation and Shipment) Regulations 2022²²⁴: these Regulations were made pursuant to the Petroleum Industry Act 2021 to regulate the transportation and shipment of petroleum or its derivatives, petroleum liquids, liquefied natural gas, or petroleum products. It contains penalties, sanctions, or fines of up to US$1,000,000 for failure to comply with the provisions or directives given in any license, permit or authorization issued under the Regulations.

In addition to these laws, there are a number of common law principles that can be applied to environmental cases in Nigeria. These principles include negligence, nuisance, and strict liability. The key elements of the framework include:

• Polluter pays principle: the polluter pays principle is the principle that the person who causes environmental damage is responsible for paying for the cost of cleaning up the damage.

• Joint and several liability: in some cases, multiple parties may be held jointly and severally liable for environmental damage. This means that any one of the parties can be held liable for the entire cost of the damage.

• Strict liability: in some cases, a party may be held strictly liable for environmental damage, even if they were not negligent. This means that they can be held liable even if they took all reasonable precautions to prevent the damage.

• Remediation and rehabilitation: this framework provides for the remediation and rehabilitation of contaminated sites. This includes the removal of contaminants, the restoration of the natural environment, and the monitoring of the site to ensure that the contamination does not return.

_{212. Climate Change Act 2021.pdf}

_{213. NESREA Act 2007.pdf as amended by National Environment Standards and Regulations Enforcement Agency (Establishment) (Amendment) Act, 2018.pdf}

_{214. EIA Act 1992.pdf}

_{215. Nigerian Urban and Regional Planning Act 2004.pdf}

_{216. Harmful Waste (Special Criminal Provisions, Etc) Act 1988.pdf}

_{217. Oil in Navigable Waters Act.pdf}

_{218. Sea Fisheries Act 1992.pdf}

_{219. Nuclear Safety and Radiation Protection Act 1995.pdf}

_{220. Niger-Delta Development Commission Act 2000.pdf}

_{221. Criminal Code Act.pdf}

_{222. Petroleum Refining Regulations 1974.pdf}

_{223. Mineral Oil Safety Regulations 1963.pdf}

_{224. Petroleum Transportation and Shipment Regulations 2022.pdf}

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Legislations

• Capital Gains Tax Act

• Climate Change Act, 2021

• Companies and Allied Matters Act, 2020

• Companies Income Tax Act

• Constitution of the Federal Republic of Nigeria, 1999 (as amended)

• Corrupt Practices and Other Related Offences Act, 2000

• Criminal Code Act

• Debt Management Office (Establishment) Act

• Economic and Financial Crimes Commission (Establishment) Act

• Ekiti State Forestry Law, 2016

• Electricity Act, 2023

• Employee Compensation Act, 2004

• Endangered Species (Control of International Trade and Traffic) Act

• Environmental Impact Assessment Act, 1992

• Exclusive Economic Zone Act, 1978

• Factories Act, 2004

• Federal Competition and Consumer Protections Act, 2018

• Finance Acts, 2019, 2020, 2021 and 2023

• Freedom of Information Act, 2011

• Harmful Waste (Special Criminal Provisions) Act, 1988

• Industrial Training Fund Act

• Inland Fisheries Act

• Investments and Securities Act, 2007

• Kwara State Charcoal Production (Prohibition) Law

• Labour Act, 2004

• Lagos State Environmental Protection Agency Law, 2017

• Land Use Act, 1978

• Merchant Shipping Act 2007

• Money Laundering (Prevention and Prohibition) Act, 2022

• Nigerian Electricity Management Service Agency Act

• National Environmental Standards and Regulations Enforcement Agency (Establishment) Act, 2007

• National Minimum Wage Act, 2011

• National Oil Spill Detection and Response Agency (Establishment) Act, 2006

• National Park Service Act

• Niger-Delta Development Commission (Establishment etc) Act, 2000

• Nigerian Customs Services Act 2023

• Nigerian Minerals and Mining Act, 2007

• Nigerian Maritime Administration and Safety Agency Act 2007

• Nigerian Ports Authority Act 1999

• Nigerian Urban and Regional Planning Act, 2004

• Nuclear Safety and Radiation Protection Act, 1995

• Oil in Navigable Waters Act, 1968

• Pensions Reform Act, 2014

• Personal Income Tax Act

• Petroleum Industry Act, 2021

• Sea Fisheries Act, 1992

• Standard Organization of Nigeria Act

• Trade Unions Act

Regulations & Guidelines

• Captive Power Generation Regulations, 2008

• Embedded Generation Regulations, 2012

• Environmental Guidelines and Standards for the Petroleum Industry in Nigeria, 2018

• Environmental Impact Assessment Procedural Guidelines

• Federal Competition and Consumer Protection Act Merger Review Regulations, 2020 and 2021, as amended.

• Gas Flaring Venting and Methane Emissions (Prevention of Waste and Pollution) Regulations, 2023

• Gas Pricing and Domestic Demand Regulations, 2023

• Gas Trading and Settlement Regulations, 2023

• Guidelines for the Award and Operations of Marginal Fields in Nigeria, 2020

• Guidelines for the Design, Construction, Operation and Maintenance of Oil and Gas Pipeline Systems in Nigeria, 2021

• Guidelines for the Production of Community Development Agreement in the Solid Mineral Sector 2023

• Mainstream and Downstream Petroleum Operations Regulations, 2023

• Merchant Shipping (Anti-Fouling Systems) Regulations, 2012

• Merchant Shipping (Ballast Water Management) Regulation, 2012

• Merchant Shipping (Dangerous or Noxious Liquid Substances in Bulk) Regulations, 2012

• Merchant Shipping (Liability and Compensation) Regulations, 2012

• Merchant Shipping (Oil Pollution Preparedness, Response and Co-Operation Convention) Regulations, 2012

• Merchant Shipping (Prevention of Pollution by Garbage) Regulations, 2012

• Merchant Shipping (Prevention of Pollution by Sewage) Regulations, 2012

• Merchant Shipping (Sea Dumping) Regulations, 2012

• Merchant Shipping (Ship Generated Marine Waste Reception Facilities) Regulations, 2012

• Midstream And Downstream Decommissioning and Abandonment Regulations, 2023

• Midstream and Downstream Penalties and Enforcement Mechanisms Regulations, 2023

• Midstream and Downstream Petroleum Environmental Regulations, 2023

• Midstream and Downstream Petroleum Operations Regulations, 2023

• Midstream and Downstream Petroleum Safety Regulations, 2023

• Midstream Gas Flare Regulations, 2023

• Mineral Oil Safety Regulations, 1963

• Mini Grid Regulations, 2023

• National Environmental (Access to Genetic Resources and Benefit Sharing) Regulations, 2009

• National Environmental (Air Quality Control) Regulations, 2021

• National Environmental (Coastal and Marine Area Protection) Regulations, 2011

• National Environmental (Control of Alien and Invasive Species) Regulations, 2013

• National Environmental (Control of Bush/Forest Fire and Open Burning) Regulations, 2011

• National Environmental (Control of Charcoal Production and Export) Regulations, 2014

• National Environmental (Dam and Reservoirs) Regulations, 2014

• National Environmental (Protection of Endangered Species in International Trade) Regulations, 2011

• National Environmental (Surface and Groundwater Quality Control) Regulations, 2011

• National Environmental (Watershed, Mountainous, Hilly and Catchments Areas) Regulations, 2009

• National Environmental (Wetlands, River Banks and Lake Shores Protection) Regulations, 2009

• NEMSA Guidelines for Inspection of Solar Mini-Grids in Nigeria

• Nigeria Upstream Petroleum Decommissioning and Abandonment Regulations, 2023

• Nigeria Upstream Petroleum Host Communities Development Regulations, 2022

• Nigerian Minerals and Mining Regulations, 2011

• Petroleum (Transportation and Shipment) Regulations, 2023

• Petroleum Licensing Round Regulations, 2022

• Petroleum Measurement Regulations, 2023

• Petroleum Refining Regulation, 1974

• Reporting Compliance Regulations, 2009

• Safety Case Guidelines for Oil and Gas Facilities in Nigeria, 2020

• Sea Fisheries (Fishing) Regulations

• Securities and Exchange Commission Rules and Regulations, 2013

• Uniform System of Accounts Regulations, 2018

• Upstream Petroleum Safety Regulations, 2022

• Upstream Petroleum Sector Code of Conduct and Compliance Regulations, 2023

Policies

• Code of Corporate Governance for Public Companies in Nigeria, 2011

• Long-Term Low Emission Development Strategy, 2060

• National Adaptation Strategy and Plan of Action on Climate Change for Nigeria

• National Climate Change Policy (2021)

• National Forestry Policy, 2006

• National Oil Spill Contingency Plan for Nigeria

• National Water Resources Policy (2016)

• Nationally Determined Contribution, 2021

• Nigerian Code of Corporate Governance, 2018

• Nigerian Ports Authority Health, Safety and Environment Policy

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Nigeria generally adheres to a dualist system, meaning international law and domestic law are considered separate legal systems. Treaties only have legal force in Nigeria if ratified and domesticated into law by the National Assembly.²²⁵ Such ratified Treaties consequently form part of the laws of Nigeria. However, customary international laws which result from a general and consistent practice of states automatically applies under the premise that Nigeria, as a member of the international community, accepts its general principles. However, no climate change law has attained the status of a customary international law.

Nigeria is a party to several multilateral and bilateral trade agreements which offer investors recourse to neutral arbitration fora in case of conflicts. However, Section 251(1)(c) of the 1999 Constitution grants exclusive jurisdiction to the Federal High Court to adjudicate over certain matters including those relating to public revenue, monetary policy, tax, and essential services.

_{225. Section 12 of the 1999 Constitution: (1) No treaty between the Federation and any other country shall have the force of law except to the extent to which any such treaty has been enacted into law by the National Assembly.}

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Existing Challenges

Nigeria has some key challenges around the implementation of some of its net zero legal framework. These challenges largely stem from the funding required to carry out the objectives of the net zero targets. For instance, while progress has been made in the introduction of renewable energy sources in Nigeria’s power sector, the implementation and in-road of renewable energy in Nigeria is still at nascent stages and can be scaled greatly, provided funding is made available.

Additionally, the absence of a legislative framework in some cases, such as the lack of a national forestry law, pose challenges to the possibility of achieving the net zero targets. Therefore, several concerted efforts need to be made to ensure that policy roadmaps are converted into legislation and given the force of law, and the implementation of such laws are encouraged.

Potential Near-Term Changes:

Judicial Reforms: Initiatives such as case management systems, alternative dispute resolution mechanisms, and improved court infrastructure are being implemented in Nigeria to address delays and inefficiencies.

Development of a robust climate change legal and regulatory framework: Efforts are being made by Nigerian states to enact environmental protection laws and regulations with EIA requirements and other climate mitigation and adaptation mechanisms.

Implementation of Climate Mitigation Mechanisms: Nigeria is charting a course towards a more sustainable future by prioritizing the implementation of robust climate mitigation mechanisms. The National Climate Change Commission (NCCC) announced its intention to introduce a carbon tax policy and budgetary system in 2023.²²⁶ This landmark move aims to incentivize cleaner energy practices and discourage carbon-intensive activities, driving a systemic shift towards a low-carbon economy.

_{226. DGB Group Nigeria to Introduce Carbon Tax https://www.bing.com/search?q=The+NCCC+announced+in+2023+its+intention+to+introduce+a+carbon+tax+policy+and+budgetary+system&cvid=dad4b9cc7bad49b881af4fd3024cf039&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIHCAEQRRj8VdIBCDgwMTFqMGo0qAIAsAIA&FORM=ANAB01&PC=HCTS Last visited 22nd January 2024.}

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