Federal Government Increases Gas Prices

The federal government just turned up the heat on the power sector, and not in a way that’s going to make your light stay on longer. Starting today, April 1, 2026, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has officially hiked the price of natural gas supplied to power generation companies (GenCos).

In a new circular, the regulator bumped the rate from $2.13 up to $2.18 per MMBTU. While a five-cent increase might sound like small change, it’s a massive deal for a power sector that is already gasping for air. This new $2.18 rate now serves as the benchmark Domestic Base Price for the entire country.

It isn’t just the power plants feeling the pinch, either. If you’re a commercial gas user, your bill just jumped to $2.68 per MMBTU. Meanwhile, gas-based industries—the folks making everything from fertilizer to diesel—are looking at a price range that tops out at that same $2.18 ceiling.

The timing couldn’t be worse. GenCos have been shouting from the rooftops about “gas constraints,” claiming they can’t even pay for the gas they currently need because the government owes them trillions of naira. While the Minister of Power and the GenCos are still arguing over exactly how many trillions are missing, this price hike adds another layer of drama to an already strained grid. With gas getting more expensive and debts piling up, the struggle to keep Nigeria’s light bulbs glowing just got a lot more complicated.