Nigeria’s Midstream and Downstream Petroleum Regulatory Authority has raised the domestic price of natural gas supplied to electricity generation companies to $2.18 per metric million British thermal units, effective April 1, 2026. The adjustment, outlined in a regulatory circular released on Tuesday, represents a five-cent increase from the previous benchmark of $2.13/MMBTU and establishes a new pricing floor for domestic gas sales.
Under the updated framework, the Domestic Base Price for natural gas within Nigeria is now fixed at $2.18/MMBTU. The revision also modifies rates for other market segments. Commercial consumers will pay $2.68/MMBTU, up from $2.63/MMBTU. Gas-dependent industrial sectors, including producers of ammonia, urea, methanol, and low-sulfur diesel, will operate under a structured pricing corridor with a floor of $0.90/MMBTU and a ceiling aligned with the new $2.18/MMBTU benchmark.
The tariff revision comes as the country’s electricity generation segment continues to manage operational and supply constraints. Power generation companies have repeatedly cited inadequate feedstock availability, linking shortages to delayed payments owed to upstream suppliers. Industry representatives have publicly stated that accumulated government arrears to generation operators have reached approximately 6 trillion naira. Federal officials, including the Minister of Power, have disputed this valuation, prompting ongoing discussions over the exact scale of outstanding obligations.
The adjusted gas pricing will require generation operators to recalibrate financial planning as they navigate existing liquidity pressures. Reliable natural gas supply remains essential to Nigeria’s power infrastructure, with thermal plants responsible for a substantial portion of national grid capacity. Pricing shifts in the feedstock market typically influence broader electricity procurement and distribution calculations.
Market participants and regulatory bodies are expected to finalize compliance measures ahead of the April implementation date. The NMDPRA will oversee the transition to ensure adherence to the revised pricing structure across domestic, commercial, and industrial segments while maintaining continuous oversight of supply chain stability.
