The federal government has increased the price of natural gas supplied to power generation companies to $2.18 per metric million British thermal units (MMBTU), the Nigerian Midstream and Downstream Petroleum Regulatory Authority announced on Tuesday. The new rate will take effect from April 1, 2026.
The adjustment represents a $0.05 increase from the previous price of $2.13/MMBTU. The regulator also updated the Domestic Base Price (DBP) and wholesale gas pricing for domestic users, establishing $2.18/MMBTU as the minimum price for gas sales within Nigeria.
Commercial gas users will now pay $2.68/MMBTU, up from $2.63/MMBTU, while gas-based industries including ammonia, urea, methanol, and low-sulfur diesel producers will operate within a price band ranging from $0.9/MMBTU to $2.18/MMBTU.
The latest increase comes amid persistent challenges in Nigeria’s power sector. Generation companies have recently cited gas shortages caused by unpaid debts to suppliers, with the Association of Power Generation Companies (GenCos) claiming the federal government owes N6 trillion—a figure disputed by the Minister of Power, Adebalu.
Industry experts warn that the new gas pricing may further strain GenCos, potentially exacerbating Nigeria’s ongoing power supply constraints and rising operational costs.
