Nigeria Raises Gas Prices, Impacting Electricity Costs

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced an increase in the domestic base price of gas from $2.13 to $2.18 per mmbtu, effective April 1, 2026. This adjustment represents a five-cent rise, or 2.35 percent.

Analysts indicate that this increase will have broader implications, particularly for households and businesses, as it may lead to higher electricity tariffs and increased operational costs in sectors heavily reliant on gas, such as manufacturing, cement, and food processing. The gas sector is crucial for Nigeria's power generation, accounting for 70 percent of electricity production.

The NMDPRA stated that the price adjustment is necessary to maintain investor confidence and ensure adequate supply, despite concerns that it may worsen economic hardships for Nigerians already facing rising utility bills and inflation. Commercial users will now pay $2.68 per mmbtu, up from $2.63 per mmbtu last year.