Nigeria has officially unveiled its first-ever Gas Trading Licence and Clearing House and Settlement Authorisation, marking a major milestone in the country’s energy sector.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) granted the licence to JEX Markets Limited, in accordance with provisions of the Petroleum Industry Act (PIA).
The presentation took place on Thursday in Abuja and was attended by key figures, including Dr. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), Mr. Farouk Ahmed, NMDPRA Chief Executive, Oscar Onyema, Chairman of JEX Markets, as well as lawmakers and other industry dignitaries.
With this licence, JEX Markets is now authorised to operate a gas trading exchange platform in Nigeria, encompassing clearing and settlement functions for natural gas and its derivatives.
The platform, designed as a commodity exchange, will provide transparent and standardised trading for gas resources.
It is the first such platform in Africa, positioning Nigeria to become a regional hub for gas pricing and trading activities.
The regulatory approval included collaboration with the Securities and Exchange Commission (SEC), which formally licensed JEX Markets as a recognised commodity exchange.
In his keynote address, Dr. Ekpo highlighted that the licence would improve access to gas for credible traders in power generation, industrial, commercial, and large-scale sectors.
He emphasised that the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, which focuses on energy security and economic diversification.
Ekpo added that the platform establishes a governance framework where investors and traders can operate in a trusted and transparent environment.
He praised NMDPRA and JEX Markets for developing the first online gas trading and settlement platform, describing it as a critical step toward competitive, investment-ready gas markets in Nigeria.
“The country’s vast gas reserves can only deliver value if managed through an efficient and well-regulated market,” he said.
The platform’s standardised reporting and enforced settlements are expected to reduce counterparty risks and increase market efficiency, while competitive pricing will improve affordability and access across the gas value chain.
Mr. Farouk Ahmed, NMDPRA Chief Executive, explained that the licence would support wholesale gas trading and settlement, strengthening domestic gas market operations.
Nigeria currently has 209 trillion cubic feet of proven gas reserves and an estimated 600 trillion cubic feet of potential reserves, yet market operations have been limited by opaque pricing, high transaction costs, and inflexibility.
Ahmed noted that ongoing initiatives such as the Decade of Gas, the Presidential Initiative on Compressed Natural Gas, and the Gas Flare Commercialisation Programme have enhanced Nigeria’s attractiveness as a gas investment destination.
The authority has also implemented multiple PIA provisions, including domestic gas demand requirements, gas aggregation licences, wholesale gas supply licences, and revisions to the Gas Transportation Network Code.
Also, gas-based industry pricing frameworks, mobility CNG pricing, and transportation tariffs have been operationalised to deepen market efficiency.
The NMDPRA chief stressed that the authority would continue to provide transparent, technology-enabled regulation to support JEX Markets, while collaborating with the SEC and other financial market institutions to harmonise rules and standardise contracts.
He also encouraged market participants to commit gas volumes, adopt standard contracts, and operate professionally to sustain investor confidence.
SEC Director-General Emomotimi Agama highlighted that for decades, Nigeria’s economy has been closely tied to crude oil price fluctuations.
The establishment of a recognised gas trading platform represents a decisive step toward transforming the country’s energy sector and creating a transparent, orderly, and reliable gas market.
The launch of this platform signals a new era for gas trading in Nigeria, fostering investment, transparency, and efficiency, while supporting the broader goal of positioning the country as a competitive energy hub in Africa.
