The Federal Government has launched Africa’s first gas trading licence, clearing house, and settlement authorization platform for efficient and transparent natural gas trading in Nigeria.
Launched on Thursday in Abuja, the platform initiated by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in collaboration with Securities and Exchange Commission (SEC) granted licenses to JEX Markets Limited to establish and operate the online platform for gas trading and exchange in the country.
Speaking during the launch, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said the platform would ensure smooth and transparent natural gas trading with global best practices.
The Minister also mentioned that the initiative was critical for the success of the nation’s ‘decade of gas’, stating that it would attract private investments and support the country’s industrialisation.
“This launch is completely consistent with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, who stated that natural gas will play the central role in the energy security, industrialisation, and economic diversification. The President’s vision requires a regulatory environment that is predictable, trusted, and designed to unlock value,” he said.
According to him, the country is richly endowed with natural gas reserves, therefore, the market must efficient, reliable, and well-regulated, to realise its full potential of.
“The gas trading licence introduced today is decisive on this front, paving the way for a new, regulated market where reliable traders will feel safe doing business, where businesses can plan, and where investors can invest, knowing that it will safeguard both their capital and the public interest.
“The licence is founded upon sound regulations and guidelines governing technical competence, commercial capability, financial soundness, and responsible operations. Among the responsibilities of the licence holders is the adherence to the various rules on gas measurement, tariffs, pricing, and assignments,” he said.
Also speaking, Director General of SEC, Dr Emomotimi Agama, said gas trading on a recognised platform declares that the country’s vast hydrocarbon resources, particularly gas, will no longer be just a commodity for export or domestic use, but a financially traded asset on a transparent, efficient, and regulated market platform.
This, he said, was a monumental shift from the physical to the financial, with profound implications.
“For decades, our economic narrative has been heavily tied to the crude oil price cycle. Today, we take a decisive step to change that script. By establishing a recognised gas trading platform.”
The platform, he said, will generate a credible, market-driven Nigeria gas price index, reflecting true domestic and regional demand and supply.
“This eliminates opacity, fosters fair pricing, and builds confidence among producers, transporters, and consumers,” he said.
On his part, Chairman, House Committee on Petroleum Resources (Downstream), Ikeagwuonu Ugochinyere, said the creation of an electronic gas trading and exchange platform is particularly significant to the country.
“It introduces transparency into pricing, strengthens price discovery, secures transactions, and opens the entire market to a wider range of participants big and small, reduces the opaqueness that has hindered efficiency in the past and aligns Nigeria with international best practices.
“For years, we have spoken about gas as the cornerstone of Nigeria’s energy future. We have emphasised our vast reserves, our potential to lead the continent, and the centrality of gas to our economic diversification plans.
“What we are witnessing here today is the operationalisation of those ideas: a move from policy to practice, and from aspiration to structured implementation,” he said.
