The Federal Government of Nigeria has increased the price of natural gas supplied to power generation companies to $2.18 per metric million British thermal units (MMBTU).
The new rate, announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), takes effect from April 1, 2026.
This represents a $0.05 rise from the previous price of $2.13/MMBTU, according to a circular issued by the regulator.
In addition, the Domestic Base Price (DBP) for gas in the local market has been set at $2.18/MMBTU, establishing the minimum benchmark for domestic gas sales. Commercial users will now pay $2.68/MMBTU, up from $2.63/MMBTU.
Gas-dependent industries—such as ammonia, urea, methanol, and low-sulfur diesel producers—will operate within a pricing band ranging from $0.90/MMBTU to $2.18/MMBTU.
The latest increase is expected to further strain Nigeria’s power sector, particularly affecting generation companies already grappling with gas supply challenges linked to outstanding debts.
Recently, the Association of Power Generation Companies raised concerns over gas shortages, attributing them to unpaid obligations. The group claimed the government owes about N6 trillion, although this figure has been disputed by the Minister of Power.
Analysts warn that the new pricing could deepen existing gas supply constraints and add pressure to electricity generation across the country.