The Federal Government has approved a fresh increase in the price of natural gas supplied to power generation companies, raising it to $2.18 per metric million British thermal units.
As reported by Daily Post, the new pricing regime was announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in a circular issued on Tuesday, with implementation scheduled to commence on April 1, 2026.
The adjustment reflects a marginal increase of $0.05 from the previous rate of $2.13 per MMBTU, signalling a review of domestic gas pricing amid ongoing challenges in the energy sector.
In the same directive, the regulator fixed the Domestic Base Price for gas at $2.18 per MMBTU, describing it as the minimum benchmark for gas transactions within the local market.
Commercial consumers are also affected by the upward review, as their new rate has been raised to $2.68 per MMBTU from the former $2.63 per MMBTU.
For gas-dependent industries such as fertiliser and chemical production, including ammonia, urea, methanol, and low-sulphur diesel manufacturers, the pricing framework now operates within a band ranging from $0.90 to $2.18 per MMBTU.
The development is expected to exert additional pressure on Nigeria’s fragile power sector, particularly on generation companies already grappling with operational constraints.
Industry operators have repeatedly raised concerns over persistent gas supply shortages, largely attributed to outstanding debts owed to suppliers, a situation that has hindered stable electricity generation.
Although the Association of Power Generation Companies had recently claimed that the Federal Government owes its members about N6tn, the Minister of Power, Adebayo Adelabu, has disputed the figure.
Analysts warn that the latest increase in gas prices could further deepen the sector’s gas supply challenges and complicate efforts to improve electricity generation across the country.
