The Nigerian Midstream and Downstream Petroleum Regulatory Authority on Tuesday announced that the Domestic Base Price of natural gas will increase to $2.18 per MMBtu, effective April 1, 2026.
The revised price reflects a slight rise from the 2025 rate of $2.13/MMBtu for power generation companies, representing an increase of five cents, or about 2.35 per cent compared to last year.
The authority stated, “Taking into cognisance the provisions of the Petroleum Industry Act, market realities, as well as the gazetted Gas Pricing and Domestic Demand Regulations, the NMDPRA hereby establishes the new Domestic Base Price as $2.18/MMBtu.”
The new pricing applies to gas supplied to key sectors, including power and industrial users. Commercial consumers will now pay $2.68/MMBtu, up from $2.63/MMBtu in 2025.
According to the regulator, the adjustment aligns with current market conditions and existing regulatory frameworks.
The updated pricing structure is expected to guide gas supply and costs in the domestic market moving forward. Gas-based industries will be charged according to an established regulatory formula, while commercial users will pay $2.68/MMBtu under the revised scheme.
The regulator emphasized that the increase aims to ensure sufficient gas supply domestically while maintaining investor confidence. The Domestic Base Price represents the minimum rate at which natural gas can be sold in the domestic market.
This rise is anticipated to impact the power generation sector, as Nigeria relies on gas for over 70 per cent of its electricity production.
Further details are expected.
