The federal government has increased the price of natural gas supplied to power generation companies to $2.18 per million British thermal units (MMBTU), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced. The new rate takes effect from April 1, 2026.
The revised price marks a $0.05 increase from the previous $2.13/MMBTU, according to a circular issued by NMDPRA on Tuesday. The regulator also confirmed that the updated Domestic Base Price (DBP) and wholesale gas price for the domestic market, serving as the minimum price for gas sales within Nigeria, is now set at $2.18/MMBTU.
Commercial users of gas will also face an increase, with the new price rising to $2.68/MMBTU from the previous $2.63/MMBTU. Gas-based industries, including ammonia, urea, methanol, and low-sulfur diesel producers, will operate within a price band of $0.90/MMBTU to $2.18/MMBTU.
The price hike is expected to further strain Nigeria’s power sector, which has recently been grappling with gas supply shortages. Generation companies have cited unpaid debts to gas suppliers as a key challenge.
The chief executive of the Association of Power Generation Companies previously stated that the federal government owed its members N6 trillion. However, the Minister of Power, Adebalu, disputed the claim.
Industry analysts warn that the new gas pricing could exacerbate the ongoing “gas constraint” affecting power generation in the country, potentially impacting electricity supply and operational costs for GenCos.