The Digest: The federal government has increased the price of natural gas supplied to power generation companies to $2.18 per metric million British thermal units, effective April 1, 2026. The Nigerian Midstream and Downstream Petroleum Regulatory Authority announced the new domestic base price, which serves as the minimum for gas sales within Nigeria. Commercial users will now pay $2.68 per MMBTU, up from $2.63. The price hike comes amid ongoing gas supply challenges and unpaid debts owed to gas suppliers by GenCos.
Key Points:
- Gas price for power generation companies increased by $0.05 to $2.18/MMBTU.
- Commercial users will pay $2.68/MMBTU, up from $2.63.
- Gas-based industries operate within a price band of $0.90 to $2.18/MMBTU.
- The hike may worsen the power sector's "gas constraint" challenges.
- GenCos have previously lamented gas shortages due to unpaid debts of up to N6 trillion.
As gas prices rise, the already struggling power sector faces additional pressure, potentially worsening electricity supply challenges and increasing costs for consumers.
Sources: Daily Post, Business Day
