‘It’ll spur industrial consumption’ — Nigerian Gas Association commends FG over price slash

The Nigerian Gas Association (NGA) says the recent decrease in the price of natural gas for power generation companies (GenCos) and commercial users can unlock more supply for the domestic market and spur industrial consumption if properly implemented.

In a circular seen by TheCable on April 11, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reduced the domestic base price (DBP) of natural gas for GenCos to $2.13 per metric million British thermal units (MMBTU), down from $2.42 per mmbtu.

The authority also said commercial users will now buy natural gas at $2.63 per mmbtu as against the previous price of $2.92 per mmbtu.

Speaking during a media parley in Lagos on Friday, Akachukwu Nwokedi, NGA president, thanked the federal government for taking steps to review the prices.

“We have to acknowledge, and I must commend the recent release by the NMDPRA of the domestic gas pricing framework,” he said.

“While pricing, I must say, remains a very sensitive issue, this move signals greater clarity and structure and, if implemented effectively, could help unlock more supply for the domestic market and spur industrial consumption.”

Also, Nwokedi said there is critical momentum in gas commercialization efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

“We have new initiatives and frameworks that are being implemented to harness Nigeria’s gas potential for domestic and regional development,” he said.

Highlighting progress in the sector, Nwokedi cited over $5 billion in new gas investments over the past year, including infrastructure, floating liquefied natural gas (LNG), gas processing, and domestic utilisation.

Speaking further, the NGA president said the association will participate in the 29th World Gas Conference (WGC2025), set to take place in Beijing, China, from May 19 to May 23.

Nwokedi added that the association will host a Nigerian pavilion at the triennial event, which will spotlight Nigeria’s gas sector progress, highlight investment-ready opportunities, and promote strategic interests under the “decade of gas” initiative.