Natural gas is one of the most popular fuels used in homes and businesses across the globe. In many countries, including Nigeria, natural gas is considered a reliable and affordable option for energy, especially in this era of decarbonization.
However, it also comes with high costs that vary depending on the location and supplier. Before choosing this fuel for your home or small business, it’s essential to understand what impacts your costs and why.
Cost of Natural Gas in Nigeria
If you’re considering switching to natural gas, you should first know how much it costs. The cost of gas varies throughout the country and is based on several factors, including location, connection type, and size of your property.
Costs are also affected by factors such as supply interruptions, weather, and increased usage during peak periods.
On July 30, 2021, the Federal government announced a reduction in the domestic base price of natural gas to power plant producers by $2.18cent per standard cubit fit which is approximately 1000NGN on standard exchange rates. This information was made available by Minister of State for Petroleum Resources, Timipre Sylva, during the 2021 Gas Sector Stakeholders Forum meeting in kano
The average cost of natural gas in Nigeria varies depending on your location and the supplier you choose. Based on current trends, the average cost of natural gas is ₦ 1,320.54 per cubic meter. On average, people pay between ₦ 100 and ₦ 600 per month for household use.
Cost of Gas in Nigeria by Region
The costs of natural gas can vary significantly depending on your location in the country. While some regions have relatively low prices, others can be significantly higher. Here are some average costs for areas within Nigeria.
Western & Central Regions Average Gas Price = NGN 2,325.22 per m3 Eastern Regions Average Gas Price = NGN 3,100.00 per m3 Nigerian National Petroleum Corporation = NGN 2,300.00 per m3 Utorogu Natural Gas Pipelines = NGN 3,200.00 per m3 Aiteo = NGN 3,000.00 per m3 Total = $18.89 USD Per Cu Meter* *These prices are for reference only and should be verified by the supplier before installation.
How to reduce your gas bills in Nigeria
As the cost of natural gas continues to rise in Nigeria, some businesses and homeowners are looking for ways to save money without impacting their lifestyles.
One of the best ways to lower your bills is to get an energy audit to identify ways to save energy and reduce your bills.
This is especially important if you’re planning on replacing your water heater or using other equipment that uses large amounts of energy.
An energy audit includes an inspection of your home to identify areas where you’re losing energy and potential solutions to reduce your energy consumption.
To determine which appliances can use the most energy in your home, you can use an energy calculator. Once you know how much energy each appliance uses and how much you’re using each month, you can find ways to reduce your energy bill and save money
.For example, switching to LED lighting can help save up to 80% on your monthly energy bill. If you use a lot of heat in your cooking, investing in an induction cooktop or stove can reduce energy use by up to 60%.
In addition to finding ways to lower your energy bills, you can also take steps to conserve water and reduce your household waste.
Here are a few tips that can help you conserve energy and water:
- Install aerators on all of your faucets to reduce water flow by 50%.
- Choose low-flow shower heads and toilets to reduce water usage and bills.
- Change your regular light bulbs to LED lamps to reduce the amount of electricity you use.