Nigeria's energy sector has reached a critical inflection point, creating unprecedented opportunities and complex legal risks. The convergence of the transformative Electricity Act 2023, the burgeoning influence of climate finance, and the decentralization of electricity market regulation is fundamentally reshaping the legal and financial frameworks for energy investments. The central strategic question for investors is no longer the availability of capital, but whether the existing institutional and regulatory architecture can efficiently deploy it for long-term, sustainable returns.

This article provides a critical legal and financial roadmap for navigating this new landscape. We analyze the pivotal role of recent statutory and institutional reforms, including the Electricity Act and the Nigerian Investment Promotion Commission Act, in unlocking investor confidence. The analysis also dissects the practical and regulatory hurdles in deploying climate finance instruments, such as green bonds and carbon credits, and draws comparative insights from successful regional and global models.

Ultimately, this analysis is designed to equip legal practitioners, financiers, and stakeholders with the actionable insights needed to capitalize on the sector's evolving opportunities while navigating its constraints, thereby mobilizing climate-aligned investment at the scale required for Nigeria's energy transition.

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