NMDPRA Raises Gas Price For GenCos to $2.18/mmbtu

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has raised the natural gas price for power generation companies (GenCos) to $2.18 per million metric British thermal units (MMBTU).
This marks a $0.05/MMBTU hike from the earlier rate of $2.13 per MMBTU.
In a circular released on Tuesday, the regulator outlined the updated domestic base price (DBP) and wholesale natural gas prices for 2025.
The DBP represents the lowest price at which natural gas can be offered in the domestic market.
The document states that the adjustment will begin on April 1, 2026.
“Taking into account the Petroleum Industry Act (PIA) provisions, current market conditions, and the official Gas Pricing and Domestic Demand Regulations, the NMDPRA sets the new Domestic Base Price at USD 2.18/MMBtu, along with wholesale prices for the strategic sector, starting April 1, 2026,” the circular states.
Signed by NMDPRA CEO Saidu Mohammed, the notice also indicates that commercial buyers will now pay $2.68 per MMBTU, up from $2.63 per MMBTU previously.
Additionally, the authority fixed prices for gas-based industries (such as ammonia, urea, methanol, and low-sulphur diesel) at a floor of $0.90 per MMBTU and a ceiling of $2.18 per MMBTU.
NMDPRA explained that the domestic base price at the marketable gas delivery point—per section 167(1) of the PIA—follows regulations based on key principles:
“a) A rate sufficient to encourage upstream producers to voluntarily supply enough gas to the domestic market.
“b) No higher than the average natural gas prices in major emerging producer nations.
“c) Based on the lowest supply costs under a three-tier framework.
“d) Aligned with market rates and international benchmarks.”
This change could affect Nigeria’s power sector, already strained by massive debts.
On March 13, APGC CEO Joy Ogaji warned that gas suppliers might halt deliveries to thermal plants due to roughly N3.3 trillion in unpaid bills from GenCos.
On February 19, Ogaji noted that the federal government owes GenCos around N6.5 trillion.