Nigeria’s power sector faces fresh cost pressure after the Nigerian Midstream and Downstream Petroleum Regulatory Authority raised the price of natural gas supplied to electricity generation companies, with the new rate taking effect from today, April 1, 2026.
The NMDPRA increased the price of natural gas supplied to power generation companies to $2.18 per metric million British thermal units (MMBtu), up from the previous $2.13/MMBtu a $0.05 rise.
The adjustment was disclosed in a circular signed by the Authority’s Chief Executive Officer, Engr. Saidu Mohammed, which also outlined revised wholesale gas prices for 2026.
According to Economy Post, commercial consumers will now pay $2.68/MMBtu, up from $2.63/MMBtu.
The NMDPRA said the decision reflects provisions of the Petroleum Industry Act, prevailing market conditions, and existing gas pricing regulations.
Under Section 167(1) of the PIA, the domestic base price must be set at a level sufficient to encourage upstream producers to supply gas voluntarily to the domestic market, while remaining competitive with prices in comparable emerging economies.
The timing adds to an already strained power sector. Nigeria relies on gas to produce over 70 percent of its electricity meaning any upward movement in gas prices has a direct knock-on effect on generation costs.
Daily Trust reports that the new pricing could force the Nigerian Electricity Regulatory Commission to review electricity tariffs upward. For Band A consumers, whose tariff has already been liberalised, the current rate of N209 per kilowatt-hour could rise further. For other bands, the federal government incurred a N1.92 trillion subsidy debt in 2025 alone a figure now likely to climb with the latest adjustment.
The price increase is expected to have implications for generation companies already weighed down by significant debt challenges.
