The Nigerian Midstream and Downstream Petroleum Regulatory Authority has announced an increase in the Domestic Base Price of natural gas to $2.18 per MMBtu, effective April 1, 2026.
The new price marks a slight rise from the 2025 rate of $2.13/MMBtu for power generation companies.
According to the authority, the adjustment represents an increase of five cents, equivalent to about 2.35 per cent compared to the previous year’s price.
The regulator said the new price was determined after considering the provisions of the Petroleum Industry Act, prevailing market conditions, and the gazetted Gas Pricing and Domestic Demand Regulations.
“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 authority stated.
The pricing structure applies to gas supplied to critical sectors of the economy, including power generation companies and industrial users.
Commercial users will now pay $2.68/MMBtu, up from $2.63/MMBtu in 2025.
The authority noted that the revised pricing framework aligns with existing regulatory policies and reflects current market realities in the domestic gas sector.
It added that gas-based industries will continue to pay according to an established regulatory pricing formula.
The regulator said the move is aimed at ensuring adequate supply of gas to the domestic market while also maintaining investor confidence in Nigeria’s gas industry.
The Domestic Base Price represents the minimum rate at which natural gas can be sold within Nigeria’s domestic market.
Industry observers say the increase could have implications for the electricity sector, as Nigeria relies on natural gas to generate more than 70 per cent of its power supply.
