BREAKING: Nigerians Face Fresh Economic Pressure As FG Raises Gas Price

…New $2.18 Per MMBtu Price Template Takes Effect April 1

Nigerians may face fresh economic pressure following a new increase in domestic gas prices, a move expected to ripple across electricity tariffs, manufacturing costs, and overall cost of living.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday announced a rise in the Domestic Base Price of natural gas to $2.18 per MMBtu, effective April 1, 2026, up from $2.13/MMBtu in 2025.

While the adjustment represents a modest increase of five cents, or about 2.35 per cent, its broader implications for households and businesses could be significant, particularly in an economy already grappling with inflation and rising energy costs.

The regulator said the review was carried out in line with the Petroleum Industry Act, existing gas pricing regulations, and prevailing market realities.

However, analysts warn that even marginal increases in gas pricing tend to have a multiplier effect across key sectors of the economy.

Gas remains the backbone of Nigeria’s power sector, accounting for more than 70 per cent of electricity generation.

As a result, any increase in gas prices is likely to push up the cost of power generation, which could eventually be passed on to consumers through higher electricity tariffs.

For many Nigerians already struggling with rising utility bills, the development signals the possibility of deeper financial strain in the coming months.

Beyond electricity, industries that rely heavily on gas including manufacturing, cement, and food processing are also expected to face higher production costs.

This could translate into increased prices of goods and services, further squeezing consumers.

The NMDPRA also announced an upward review of gas prices for commercial users, who will now pay $2.68/MMBtu, up from $2.63/MMBtu last year.

This increase is expected to directly affect businesses, many of which may have little choice but to transfer the additional costs to end users.

“The new pricing reflects market conditions and regulatory provisions,” the authority stated, adding that the adjustment is necessary to ensure sustainable gas supply and attract investment into the sector.

But stakeholders argue that the timing of the increase could worsen existing economic hardship.

The Domestic Base Price sets the minimum rate at which gas can be sold within Nigeria, serving as a benchmark for pricing across the domestic market.

While the government maintains that such adjustments are essential to maintain investor confidence and ensure adequate supply, concerns remain about the immediate burden on consumers and small businesses.

Nigeria has in recent months implemented a series of economic reforms aimed at stabilising the economy and attracting investment.

However, these reforms have also led to higher costs in critical sectors, including fuel, electricity, and now gas.

For many households, the latest increase reinforces concerns that the benefits of reforms may take longer to materialise, while the pain is already being felt.