The federal government unveils the country’s first gas trading license, clearing house, and settlement authorization, poised to transform Nigeria’s gas sector.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in collaboration with the Securities and Exchange Commission (SEC), has licensed Jex Markets to establish and operate a Gas Clearing House and Settlement Authorization platform.
The initiative aims to enhance transparency, foster competitiveness, and attract more investment into the sector.
Speaking at the launch event in Abuja, Ekperikpe Ekpo, minister of state for Petroleum Resources (Gas), described the initiative as a cornerstone of the government’s decade of gas agenda.
He noted that a well-regulated trading environment will strengthen industrialization and encourage private investment in gas processing and transportation.
Ekpo said, “By creating a secure and predictable regulatory framework, this platform ensures that investors can commit capital with confidence, while the nation maximizes the economic benefits of its abundant natural gas reserves.”
Highlighting Nigeria’s vast gas potential, Ekpo emphasized that efficient market mechanisms are essential for unlocking the resource’s full value.
“This launch aligns with president Bola Ahmed Tinubu’s vision for natural gas to drive energy security, industrialization, and economic diversification,” he added.
Farouk Ahmed, NMDPRA’s chief executive, explained that the platform complies with Section 159 of the Petroleum Industry Act (PIA), enabling structured trading and settlement of wholesale gas.
He noted that Nigeria’s domestic gas market has long faced challenges such as pricing opacity, high transaction costs, limited flexibility, and low investment levels.
Ahmed said, “The gas trading license and related regulatory instruments will promote transparency, efficiency, and price discovery while ensuring safe and reliable trading practices.
“This framework will transform Nigeria’s gas sector into a competitive and dynamic market.”
Emomotimi Agama, director general of the SEC, added that the new platform marks a shift from an oil-dependent economic narrative.
“A recognized gas trading platform introduces price transparency, market liquidity, and incentives for infrastructure development, supporting a more diversified and resilient economy,” he stated.
The launch represents a key step in modernizing Nigeria’s gas market, providing a regulated, technology enabled environment that encourages long term investment in the country’s energy sector.
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