THE LEGAL AND REGULATORY IMPERATIVE FOR A SHARED TELECOMMUNICATIONS AND POWER INFRASTRUCTURE MODEL IN NIGERIA’S OIL AND GAS SECTOR

Abstract

Nigeria’s economic landscape is defined by a stark paradox: vast energy resources coexist with profound energy poverty. This is acutely evident in its two most critical sectors. The oil and gas industry, responsible for a significant portion of government revenue, routinely flares associated gas due to a lack of viable commercial outlets, wasting resources and causing environmental damage while simultaneously relying on expensive, polluting diesel generators for its operational power. Parallelly, the telecommunications sector, the bedrock of the nation's digital economy, dedicates up to 70% of its operational expenditure to diesel fuel for powering over 30,000 base stations nationwide. This paper argues for a legally facilitated, symbiotic infrastructure-sharing model that utilizes stranded and flared gas from oil fields to generate electricity for co-located telecommunications infrastructure. It posits that while the technical and economic feasibility of this model is sound, its implementation is critically hampered by a complex, siloed, and often contradictory legal and regulatory framework. Through a comprehensive analysis of the Petroleum Industry Act (PIA) 2021, the Nigerian Gas Flare Commercialisation Programme (NGFCP), the Electricity Act 2023, and relevant telecommunications regulations, this paper identifies the specific commercial, contractual, and regulatory impediments to this convergence. The study concludes that a proactive harmonization of these legal silos is not merely beneficial but imperative to unlock a triple-win scenario: enhancing operational efficiency and profitability for both sectors, significantly reducing environmental pollution, and bolstering national energy security. The research contributes to the discourse on sustainable development law, energy law, and the role of commercial law in fostering innovative cross-sectoral solutions in emerging economies.