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), with the new rate taking effect from April 1, 2026.
The adjustment represents a $0.05 increase from the previous price of $2.13/MMBTU. The revised rate also sets the Domestic Base Price (DBP) and wholesale gas pricing for the domestic market at $2.18/MMBTU, making it the minimum benchmark for gas sales within Nigeria.
Under the updated pricing structure, commercial users will now pay $2.68/MMBTU, up from $2.63/MMBTU.
For gas-based industries such as ammonia, urea, methanol, and low-sulfur diesel producers, prices will operate within a range of $0.90/MMBTU to $2.18/MMBTU.
The increase is expected to place additional strain on Nigeria’s already challenged power sector, particularly on generation companies (GenCos) that depend on gas for electricity production.
With operating costs likely to rise, the new pricing may worsen existing concerns around gas supply constraints, which have continued to affect electricity generation across the country.
Stakeholders in the sector have repeatedly expressed concern over mounting financial pressures and supply-related challenges. The latest increase in gas pricing could further complicate efforts to stabilize power generation and improve electricity supply nationwide.
Post comments (0)