The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has raised the Domestic Base Price of natural gas to $2.18 per MMBtu, an increase from the previous $2.13/MMBtu.
The new price becomes effective from April 1, 2026.
The adjustment, which represents an increase of 5 cents or about 2.35 percent, was disclosed on Tuesday as part of ongoing efforts by the Federal Government to align gas pricing with prevailing market realities and ensure sustainability in the sector.
According to the authority, the review was carried out in line with the provisions of the Petroleum Industry Act, as well as existing regulatory frameworks guiding domestic gas pricing.
The NMDPRA explained that the upward review is necessary to attract investment into the gas value chain, guarantee adequate supply, and support the long-term stability of Nigeria’s energy sector.
Gas remains a critical component of Nigeria’s power sector, accounting for over 70 percent of electricity generation. Industry analysts note that while the increase is marginal, it could have ripple effects on power generation costs, which may ultimately influence electricity tariffs.
The regulator also announced a corresponding increase for commercial users, with gas prices rising to $2.68/MMBtu from $2.63/MMBtu recorded in the previous year. This category includes key industries such as manufacturing, cement production, and food processing, which depend heavily on gas for operations.
Stakeholders observe that changes in gas pricing often impact production costs across multiple sectors, potentially influencing the prices of goods and services. However, the government maintains that cost-reflective pricing is essential for sustaining supply and encouraging private sector participation.
“The new pricing reflects market conditions and regulatory provisions”, the authority stated, emphasising that the adjustment is designed to strengthen the domestic gas market and ensure long-term energy security.
The Domestic Base Price serves as the minimum benchmark for gas sales within Nigeria, shaping pricing structures across the industry. Its periodic review is seen as a key tool in balancing consumer interests with the need to maintain investor confidence.
