Nigerian govt increases price of gas

The national authorities has accrued the terms of earthy state supplied to powerfulness procreation companies to $2.18 per metric cardinal British thermal units (MMBTU).

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the caller terms volition instrumentality effect from April 1, 2026.

The caller complaint represents a $0.05 summation from the erstwhile terms of $2.13/MMBTU, according to NDPRA’s circular issued connected Tuesday.

The regulator besides announced the updated Domestic Base Price (DBP) and wholesale state pricing for the home market, serving arsenic the minimum terms for state income wrong Nigeria, has been acceptable astatine $2.18/MMBTU.

Similarly, commercialized users volition present wage $2.68/MMBTU, up from $2.63/MMBTU.

Gas-based industries, including ammonia, urea, methanol, and low-sulfur diesel producers, volition run wrong a terms set ranging from a level of $0.9/MMBTU to a ceiling of $2.18/MMBTU.

Impact connected the powerfulness sector

The caller state pricing would further interaction the country’s already strained powerfulness sector, particularly for procreation companies.

The terms hike comes astatine a clip GenCos precocious lamented state shortage challenges owed to unpaid debts to state suppliers.

Recall that the main enforcement of the Association of Power Generation Companies said the national authorities owed its members’ indebtedness amounting to N6 trillion; however, the curate of power, Adebalu, disputed the figure.

The ...