The Federal Government has increased the price of natural gas for power generation companies to $2.18 per metric million British thermal units. This represents a slight increase from the previous price of $2.13. The new rate was announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The revised domestic base price and wholesale gas prices for 2025 will take effect from April 1, 2026. The domestic base price is the minimum rate at which gas can be sold within the country. Commercial users will now pay $2.68 per unit, up from $2.63.
The regulatory authority says the pricing structure is designed to reflect market realities and encourage sufficient gas supply to the domestic market. It also aligns with international benchmarks and existing regulations under the Petroleum Industry Act.
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The development is expected to affect electricity generation in the thermal power sector. Power generation companies are already facing financial challenges, with industry officials warning of possible gas supply disruptions due to mounting debts running into trillions of naira owed to gas suppliers.
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