Nigeria’s to brace for an increase in the electricity tariff

A report by the Nigerian news publication, The Punch revealed that following a review of the new natural gas price, by the Nigerian Electricity Regulatory Commission, the price rise is likely to lead to an increase in electricity tariff payable by the Nigerian power consumers.

Currently, more than 70% of its electricity comes from gas-fired thermal power plants, in the West African country.

The revised domestic base price and wholesale rates of natural gas for 2024 were made public in an announcement on Monday by the regulatory body known as the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Additionally, the NMDPRA increased the price of commercial gas from $2.5mmbtu to $2.92mmbtu. Farouk Ahmed, the Chief Executive of NMDPRA, signed the statement.

The previous Multi-Year Tariff Order released in January 2024, for electricity companies was computed based on the former natural gas price.

This implies that the electricity tariff is highly likely to increase given the fact that natural gas is a primary component used in electricity generation in Nigeria.

Gas producers in the West African country have consistently demanded an increase in the product’s price, citing both domestic and foreign oil and gas businesses, emphasizing that doing so would encourage them to increase output.

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