Nigeria expands gas output, electricity metering and LPG imports to curb rising prices

The Nigerian federal government reported that the national electricity metering rate has risen to about 57 percent, with hundreds of thousands of new meters installed under the Presidential Metering Initiative and a World Bank‑supported programme. About 45 percent of customers are now on cost‑reflective tariffs, and the subsidised segment has been re‑structured, cutting the projected subsidy burden by over a trillion naira.

Gas production has increased to 7.63 billion standard cubic feet per day, up from 6.83 bcf in 2023, while proven gas reserves exceed 215 trillion cubic feet. The rise follows presidential directives that have attracted more than $4 billion of international oil‑company investment and revived stalled upstream projects.

Liquefied petroleum gas (LPG) prices have surged to as high as N2,100 per kilogram, far above the regulator’s indicative range of roughly N1,018‑N1,224. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) attributed the disparity to non‑cost‑reflective pricing by marketers, hoarding, diversion, and the export of domestically produced LPG. The government directed the Department of State Services, the Economic and Financial Crimes Commission and the Police to intervene against these practices.

To avert fuel shortages, the NMDPRA approved fresh import permits for petrol and diesel for July‑September 2026, authorising companies such as AA Rano, AYM Shafa, Bono Energy, Nipco, Matrix Energy and Pinnacle Oil to import over 800 000 tonnes of gasoline and substantial diesel volumes. In June 2026, LPG imports rose to 16 642 tonnes, lifting daily domestic supply to 5 040 tonnes and extending stock adequacy to 22 days.

These measures are part of a broader effort to improve energy security, reduce inflationary pressure on households and support Nigeria’s industrial competitiveness.