The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it has increased the price of natural gas for power generation companies (GenCos) to $2.18 per metric million British thermal units (MMBTU).
This reflects a $0.05/mmbtu increase from the previous price of $2.13 per MMBTU.
The authority announced the new domestic base price (DBP) and wholesale prices of natural gas for 2025 in a circular on Tuesday.
The DBP is the minimum price at which natural gas can be sold in the domestic market.
According to the circular, the new price will take effect on April 1, 2026.
“Accordingly, taking into cognizance the provisions of the PIA, market realities, as well as the gazetted Gas Pricing and Domestic Demand Regulations, the NMDPRA hereby establishes the new Domestic Base Price as USD 2.18 / MMBtu and wholesale prices of natural gas in the strategic sector, effective 1st April, 2026,” the circular reads.
In the circular, signed by Saidu Mohammed, chief executive officer (CEO) of the NMDPRA, the authority said commercial users will now buy natural gas at $2.68 per mmbtu as against the prior price of $2.63 per mmbtu.
The agency also set the price for “gas base industries (ammonia, urea, methanol, low sulphur diesel)” at $0.9 per mmbtu (floor price) and $2.18 per mmbtu (ceiling price), respectively.
NMDPRA said that the domestic base price at the marketable gas delivery point, under section 167(1) of the PIA, will be set in accordance with regulations that incorporate several guiding principles.
“a) The price must be of a level to bring forward sufficient natural gas supplies for the domestic market on a voluntary basis by the upstream producers,” the authority said.
“b) The price shall not be higher than the average of similar natural gas prices in major emerging countries that are significant producers of natural gas.
“c) Lowest cost of gas supply based on three tier cost of supply framework.
“d) Market-related prices tied to International Benchmarks.”
The development is expected to impact power generation in the country, which is burdened by debt.
On March 13, Joy Ogaji, chief executive officer (CEO) of the Association of Power Generation Companies (APGC), said gas firms are planning to stop supply to thermal power plants over an estimated N3.3 trillion debt owed by generation companies (GenCos).
On February 19, Ogaji said the federal government currently owes the GenCos about N6.5 trillion
