Juliet Ezeh
Electricity consumers across Nigeria may soon face renewed pressure on tariffs following a fresh increase in the domestic price of natural gas by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The regulator on Tuesday announced that the Domestic Base Price of gas has been raised to $2.18 per MMBtu, effective April 1, 2026, up from $2.13 in 2025.
While the increment appears marginal at just five cents, analysts warn that even slight increases in gas pricing can ripple through Nigeria’s fragile power sector, where over 70 percent of electricity generation depends on gas-fired plants.
The new pricing framework also affects commercial users, who will now pay $2.68/MMBtu, compared to $2.63 last year—further tightening operational costs for industries already grappling with high energy expenses.
According to the regulatory authority, the adjustment aligns with provisions of the Petroleum Industry Act and reflects current market realities. The move, it said, is designed to strike a balance between ensuring steady domestic gas supply and sustaining investor confidence in the sector.
However, the development raises concerns about the potential knock-on effects on electricity tariffs, as generation companies may pass on higher input costs to distribution companies—and ultimately, consumers.
For manufacturers and small businesses, the increase signals another layer of cost pressure in an already challenging economic climate. Energy experts note that rising gas prices could also discourage industrial expansion and weaken competitiveness.
The Domestic Base Price serves as the benchmark minimum rate for gas sales within Nigeria, making it a critical factor in determining energy costs across multiple sectors.
With the new rate set to take effect immediately, attention is now shifting to how power generation companies and regulators will manage the impact—particularly in a country where reliable and affordable electricity remains a persistent challenge.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.