Nigeria Raises Natural Gas Price to $2.18/MMBtu Effective 2026

The Nigerian Midstream Downstream Petroleum Regulatory Authority announced on Tuesday that the domestic base price for natural gas will rise to $2.18 per MMBtu, effective April 1, 2026. This new price represents a margin increase from the 2025 rate of $2.13 per MMBtu.

Power generation companies are expected to adjust their pricing to reflect this increase, which amounts to a five-cent rise, equating to a 2.35 percent increase compared to the previous year's price. The authority stated that this adjustment considers the provisions of the Petroleum Industry Act and current market realities.

The new regulated price will apply to gas supplied to key sectors, including the power industry and commercial users, who will pay $2.68 per MMBtu, up from $2.63 per MMBtu in 2025. The adjustments are made in line with prevailing market conditions and aim to maintain investor confidence while ensuring adequate gas supply in the domestic market, which relies on gas for 70 percent of its electricity generation.