Nigeria raises gas price Nigeria for power generation companies to $2.18/MMBTU, affecting GenCos and industrial users from April 2026

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, on Tuesday announced that the Federal Government has increased the domestic gas price Nigeria for power generation companies to $2.18 per metric million British thermal units, with the new rate scheduled to take effect from April 1, 2026.

Also read: Nigeria Faces Worsening Power Crisis as Gas Suppliers Halt Supply Over N3.3tn Debt

The adjustment represents an increase of $0.05 from the previous benchmark of $2.13 per MMBTU.

The regulator disclosed the revised pricing framework in a circular, outlining updated rates across different categories of domestic gas users.

Under the new structure, the Domestic Base Price and wholesale gas pricing have been fixed at $2.18 per MMBTU, serving as the minimum benchmark for transactions within the domestic market.

Commercial users will now pay $2.68 per MMBTU, reflecting a marginal increase from the earlier rate of $2.63.

The NMDPRA also introduced a pricing band for gas-based industries, including ammonia, urea, methanol and low-sulphur diesel producers.

These sectors will operate within a range between $0.9 per MMBTU and a ceiling of $2.18 per MMBTU, depending on usage and classification.

The revised gas price Nigeria policy is expected to have significant implications for the power sector, particularly for generation companies already grappling with operational constraints.

Industry stakeholders have repeatedly raised concerns over gas shortages and outstanding debts owed to suppliers, which have continued to strain electricity generation.

The development comes amid ongoing debates over the financial challenges facing GenCos, with industry representatives previously citing substantial arrears owed by the government, while the Ministry of Power has contested the figures.

Also read: EEDC Attributes Southeast Power Drop to Gas Shortage

Analysts suggest the latest adjustment could further tighten operating conditions in the sector, potentially deepening existing supply challenges and placing additional pressure on electricity generation and distribution across the country.