The Federal Government has approved a slight increase in the price of natural gas supplied to power generation companies, raising it to $2.18 per metric million British thermal units (MMBTU).
The new rate, announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), will take effect from April 1, 2026.
According to the regulator, the adjustment reflects a $0.05 increase from the previous price of $2.13/MMBTU, as outlined in a circular released on Tuesday.
The agency also confirmed that the updated Domestic Base Price (DBP), which serves as the benchmark for gas sales within Nigeria, has been set at the same $2.18/MMBTU.
For commercial users, the price has also been revised upward to $2.68/MMBTU, compared to the previous $2.63/MMBTU.
Meanwhile, gas-based industries including ammonia, urea, methanol, and low-sulfur diesel producers will operate within a pricing range, with a minimum of $0.9/MMBTU and a ceiling of $2.18/MMBTU.
Impact on Power Sector
The price increase is expected to add further pressure on Nigeria’s already struggling power sector, particularly affecting generation companies (GenCos).
This development comes amid ongoing concerns over gas supply shortages, which GenCos have linked to outstanding debts owed to suppliers.
Earlier, the head of the Association of Power Generation Companies disclosed that the Federal Government owed its members about N6 trillion, although the Minister of Power, Adebalu, has challenged that figure.
With the new pricing in place, experts warn that existing gas supply constraints in the power sector could worsen if underlying financial issues remain unresolved.
