News
Electricity Tariff Hike Looms As FG Raises Gas Price
![](https://naijablitznews.com/wp-content/uploads/2024/02/Tinubu-appoints.jpg)
The Federal Government, on Monday, announced that the new price of natural gas for power generation companies is now $2.42 per metric million British thermal unit, higher than the previous rate of $2.18mmbtu.
Nigeria generates over 70 per cent of its electricity from thermal power plants that are fired by gas. Therefore, the rise in the cost of the commodity may lead to a hike in the tariff payable by power consumers once the Nigerian Electricity Regulatory Commission carries out another tariff review.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, an agency of the Federal Government, unveiled the new domestic base price and wholesale prices of natural gas for 2024 in an announcement on Monday.
The NMDPRA also pegged the cost of commercial gas at $2.92mmbtu, up from the previous cost of $2.5mmbtu. The announcement was signed by the Chief Executive, NMDPRA Farouk Ahmed.
Recall that the Multi-Year Tariff Order released by NERC in January 2024 for the electricity distribution companies was calculated based on the previous price of natural gas.
Therefore, going by the latest cost of the commodity, there is a high tendency for an upward review of power tariffs, as gas is a major component used in power production.
Gas producers including international and domestic oil and gas companies, have repeatedly called for the upward review in the price of the product, stressing that this would be an incentive to ramp up production.
In the announcement on Monday, Ahmed said the Petroleum Industry Act 2021 assented to by the President on August 16, 2021, and gazetted in August 2021, provided a clear regulatory framework for the determination of a market-based pricing regime for the domestic gas market.
The NMDPRA boss further stated that the latest action was taken in line with section 167, the third and fourth schedule of the PIA 2021, which mandated the regulator to determine the Domestic Base Price and the marketable wholesale price of natural gas supplied to the strategic sectors.
He said, “The DBP at the marketable gas delivery point under Sector 167(1) and other provisions of the PIA shall be determined based on regulations which incorporate among such other matters, the following principles.
“(b) The price shall not be higher than the average of similar natural gas prices in major emerging countries that are significant producers of natural gas.
“(c) Lowest cost of gas supply based on three-tier cost of supply framework. (d) Market-related prices tied to international benchmarks.”
The NMDPRA, therefore, emphasised that it had set the “2024 Domestic Base Price at $2.42/MMBTU and wholesale prices for natural gas in strategic sectors, following consultations with stakeholders and in compliance with the PIA and Gas Pricing Regulations.”
News
Finally, IGP approves hunger protests across Nigeria
![](https://naijablitznews.com/wp-content/uploads/2024/02/Kayode-Egbetokun1.jpg)
The Nigerian police has finally approved the planned nationwide protests and outlined conditions for participants.
The Inspector General of Police, Kayode Egbetokun, revealed this on Friday while addressing journalists in Abuja.
He urged all groups planning to participate in the proposed nationwide protest to submit their details to the Commissioners of Police in their respective states.
The police boss said this was to ensure the protest was peaceful.
Egbetokun said, “We acknowledge the constitutional right of Nigerian citizens to peaceful assembly and protest.
“However, in the interest of public safety and order, we urge all groups planning to protest to provide necessary details to the Commissioner of Police in the state where the protest is intended to take place.
“To facilitate a successful and incident-free protest, they should please provide the following information: state the proposed protest routes and assembly points; expected duration of the protest; and names and contact details of protest leaders and organisers.”
The police boss said the information expected from the organisers also include measures to prevent hijacking by criminal elements, as well as key identifiers for possible isolation of potential troublemakers.
By providing the information, he said, the police will be able to deploy adequate personnel and resources to ensure public safety.
He said the police needed to know the specific routes and areas for the protest to avoid conflicts with other events or activities.
Mr Egbetokun said the police will “establish clear communication channels with protest leaders to address any concerns or issues that may arise; minimise the risk of violence, property damage, or other criminal activity.
“We encourage all protesters to cooperate with the police, obey the law, and adhere to global best practices for peaceful assembly to guarantee a safe and successful exercise of their rights.
News
Reps North-West Caucus Beg Youths, Citizens In The Region Not To Join Planned Protest
![](https://naijablitznews.com/wp-content/uploads/2024/07/20240726_155935-scaled.jpg)
News
Reps Applaud FCT Minister, Wike On AICL Improved Revenue, Infrastructure
![](https://naijablitznews.com/wp-content/uploads/2024/07/IMG-20240726-WA0005.jpg)
-
News20 hours ago
Iwuanyanwu was a Heavyweight in all ramifications-Abaribe
-
News19 hours ago
Tinubu, Southern Govs Mourn Iwuanyanwu
-
News19 hours ago
Sokoto Governor, Aliyu’s Wife Holds Lavish Birthday As Guests Spray Dollar Notes On Her Amid Hunger, Hardship
-
News18 hours ago
Protest: President Tinubu In Closed-door Meeting With Traditional Rulers (Video)
-
News20 hours ago
Tinubu’s Presidency Is Failing Nigerians – Afenifere
-
News15 hours ago
Nationwide protest: ‘Airport Is Filled Up, Govs, Senators, Reps, Ministers Traveling Abroad’ — Fayose
-
News20 hours ago
IGP Orders DPOs, Their Men To Storm Vulcanizer Shops Ahead Of Planned Nationwide Protest
-
Metro19 hours ago
8 School Children Rescued In Lokoja Auto Crash