FG Increases Gas Prices — Electricity Bills And Living Costs Could Skyrocket

Nigerians are set to face increased economic pressure following a recent rise in domestic gas prices, a move expected to affect electricity tariffs, manufacturing expenses, and the general cost of living. According to Ireporter Online, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced on Tuesday that the Domestic Base Price of natural gas will increase to $2.18 per MMBtu, effective April 1, 2026, up from $2.13/MMBtu in 2025.

Although the increase represents a modest 2.35 percent adjustment, analysts warn that it could have wider implications for both households and businesses. The regulator stated that the review follows the Petroleum Industry Act, existing gas pricing regulations, and current market conditions. “The new pricing reflects market conditions and regulatory provisions,” the authority noted, adding that the adjustment is aimed at ensuring sustainable gas supply and attracting investment to the sector.

Gas remains the primary fuel for Nigeria’s power sector, accounting for more than 70 percent of electricity generation. Experts caution that any rise in gas prices is likely to increase the cost of power generation, which could be passed on to consumers through higher electricity tariffs. Many Nigerians, already contending with rising utility bills, may face additional financial strain.

Industries reliant on gas, such as manufacturing, cement, and food processing, are also expected to incur higher operating costs. This development could result in increased prices for goods and services, placing further pressure on households already navigating inflationary challenges.

The NMDPRA additionally announced a hike in gas prices for commercial users, who will now pay $2.68/MMBtu, up from $2.63/MMBtu last year. Businesses affected by the increase may have little choice but to transfer the extra costs to consumers. The Domestic Base Price serves as the minimum benchmark for gas sales within Nigeria, influencing pricing across the domestic market.

While government officials maintain that the adjustment is essential for sustaining investor confidence and ensuring adequate supply, some stakeholders argue that the timing may exacerbate economic hardship. Nigeria has recently implemented economic reforms aimed at stabilizing the economy and attracting investment, but these measures have also contributed to higher costs in key sectors, including fuel, electricity, and now gas.