The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has officially raised the Domestic Base Price (DBP) for natural gas, effective April 1, 2026.
The new rate is set at $2.18 per MMBtu, up from the 2025 price of $2.13 per MMBtu.
Breakdown of the New Pricing Structure
The adjustment reflects a 2.35% increase (five cents) across key domestic consumption categories:
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Power Generation: Increased to $2.18/MMBtu.
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Commercial Users: Increased to $2.68/MMBtu (formerly $2.63).
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Gas-Based Industries: Pricing will continue to be determined by an established regulatory formula.
Regulatory Justification
The NMDPRA stated that the revision aligns with the Petroleum Industry Act (PIA) and the Gas Pricing and Domestic Demand Regulations.
The authority noted that the decision was influenced by current “market realities” and the need to balance domestic supply requirements with the necessity of maintaining investor confidence in the sector.
Broader Economic Implications
This price adjustment is expected to have a direct impact on Nigeria’s energy costs, as natural gas powers more than 70% of the nation’s electricity generation.
The Domestic Base Price serves as the floor price for all local gas transactions, meaning the hike could translate to higher operational costs for power plants and industrial manufacturers nationwide.
