The Nigerian Midstream and Downstream Petroleum Regulatory Authority has approved a fresh increase in domestic gas pricing, setting a new benchmark of 2.18 dollars per MMBTU for power generation, effective April 2026.
The adjustment marks a slight rise from the previous rate and reflects broader efforts to align pricing with market realities under the Petroleum Industry Act. Updated rates also affect commercial users, who will now pay higher tariffs, while gas-based industries will operate within a revised pricing band.
Regulators say the new structure is designed to strike a balance between affordability and investment attraction in Nigeria’s gas sector. By tying prices to international benchmarks and production costs, authorities aim to encourage supply while keeping the domestic market competitive.
The News Chronicle understands that the timing of the increase comes as Nigeria’s power sector faces mounting financial strain. Gas suppliers have raised concerns about unpaid debts totaling trillions of naira, warning that supply disruptions could follow if obligations remain unsettled. Power generation companies are also grappling with liquidity challenges, further complicating the outlook.
Analysts warn that even a modest price increase could ripple through the energy value chain, potentially raising electricity generation costs and impacting industrial production. With gas playing a central role in Nigeria’s power mix, stakeholders are now watching closely to see how the new pricing regime affects supply stability and broader economic activity.
