NIGERIA Law and Practice Contributed by: Tosin Ajose, Izuchukwu Ubadinma, Deborah Leshi and Precious Omope, DealHQ Partners
leverage complementary expertise for large-scale pro- jects. Similarly, private equity and venture capital firms are deploying capital into high-growth and strategi- cally important projects, especially across renewable energy, power distribution and infrastructure mod- ernisation, where potential returns are substantial. In addition, public-private partnerships remain a central access route for many investors, enabling collabora- tion with the government (sovereign and sub-sover- eign) to finance, develop and operate projects under concession arrangements. Beyond these, development finance and blended finance structures are gaining prominence, with development finance institutions and impact inves- tors offering concessional funding, guarantees and climate-aligned investment tools to catalyse private sector participation. 1.4 Energy and Infrastructure Projects Nigeria is currently witnessing significant activity in both the energy and infrastructure sectors, with a mix of large-scale conventional and growing renewable projects. In the conventional energy space, major initiatives include the Dangote Refinery expansion in Lagos, which will add 750,000 barrels per day to the existing 650,000 bpd facility, bringing total refin- ing capacity to 1.4 million bpd by 2028. This expan- sion also features a 1,000 MW self-generation power plant to support uninterrupted operations. The federal government is also rolling out 1.1 million electricity meters nationwide, aiming to close the metering gap, enhance billing accuracy and strengthen revenue col- lection. On the renewable side, Nigeria is developing utility- scale solar projects such as the Jigawa Solar PV ini- tiative, targeting 50–100 MW in its pilot phase, with long-term plans potentially reaching 1,000 MW. Com- plementing this are mini-grid and distributed energy programmes, expected to deliver electricity to 1.5– 2 million people in rural and peri-urban areas, lever- aging public-private partnerships and concessional financing. Infrastructure projects are equally ambi- tious. The Green Line rail project in Lagos will span 68 km with 17 stations, improving urban mobility, with an expected daily ridership of 500,000. The Bakassi Deep Seaport in Cross River State, valued at around
USD3.5 billion, is being developed to accommodate large vessels and reduce congestion at existing ports. In the digital infrastructure space, Project BRIDGE is set to deploy 90,000 km of fibre-optic cable nation- wide, forming a backbone for broadband connec- tivity. Industrial development is also a focus, with Afreximbank’s USD5 billion textile and industrial facil- ity combining manufacturing, agro-industrial opera- tions and logistics infrastructure, projected to create approximately 250,000 jobs. Overall, while conventional energy projects – par- ticularly oil, gas and large hydro – remain dominant in terms of scale and investment, renewable energy projects are growing rapidly, especially in distributed generation and off-grid solutions. This mix reflects Nigeria’s dual focus on maintaining energy security through conventional sources while progressively expanding renewable capacity, with the renewables market expected to grow from 3.59 GW in 2025 to over 11 GW by 2030. 2. Establishing and Exiting Early- Stage Companies in the Energy and Infrastructure Industry 2.1 Establishing and Financing a New Company Establishing and financing an early-stage company in Nigeria’s energy and infrastructure sectors requires careful attention to legal, regulatory, financial and operational considerations. One of the first decisions is the choice of business structure. Most early-stage ventures adopt a Private Limited Company (Ltd) format, which provides lim- ited liability, flexible governance and easier access to private capital. Companies with larger ambitions or plans to raise funds publicly may instead choose a Public Limited Company (PLC). Formal registration with the Corporate Affairs Commission (CAC) is man- datory, with the company’s share capital, ownership and governance framework documented, forming the legal foundation for operations.
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