Chairman of Geometric Power and former Minister of Power, Prof. Barth Nnaji, has raised alarm over the wide gap between government-regulated gas prices and actual market rates, saying it’s a major reason Nigeria’s power sector is struggling.

Speaking at a Lagos energy conference, Nnaji said the official gas price for power generation is set at $2.13 per unit, but in reality, power companies often buy gas at much higher rates—sometimes up to $9.

“This difference in gas prices is killing power supply,” he said. “It’s one of the main reasons the sector can’t grow and why we still have poor electricity.”

He explained that most power companies depend on gas to generate electricity, but the current pricing system makes it hard for them to survive.

The impact, he added, is already showing in the N1.1 trillion electricity subsidy recorded in the first half of 2025, and the N5 trillion debt the government owes to electricity producers.

Nnaji urged regulators to adopt more realistic electricity tariffs that reflect actual costs, including imported equipment and maintenance.

“If we want steady power, we need a pricing system that works in the real world, not just on paper,” he said.