December 12, (THEWILL) — Nigeria’s energy sector has recorded a major milestone as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in collaboration with the Securities and Exchange Commission (SEC), has issued key licences to JEX Market to establish and operate a Gas Clearing House and Settlement Authorisation Platform.
The approvals pave the way for Nigeria’s first formal commodity exchange for natural gas and its derivatives, and the first of its kind in Africa.
The licences issued include a Gas Trading Licence, Gas Clearing House and Settlement Authorisation, and approval for registration as a Licensed Commodity Exchange.
They follow a rigorous regulatory process and form part of the ongoing implementation of the Petroleum Industry Act (PIA) 2021.
Speaking at the issuance ceremony, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the development as a defining moment for Nigeria’s energy transition, noting that the new platform will make gas sales and procurement more seamless, reliable and cost-effective.
He broke down the significance of the licence in three key areas — access, dependability and affordability.
According to him, the trading platform will ensure credible participation, transparent market entry, reliable reporting, enforced settlements and a competitive pricing system that lowers barriers and enhances efficiency across the gas value chain.
Engr. Farouk Ahmed, Chief Executive of NMDPRA, said the licensing of JEX Market aligns fully with the objectives of the PIA.
He stated that full implementation of the Act will unlock vast investment opportunities across power, industrial and transportation sectors, adding that NMDPRA will continue to work with SEC and key financial institutions to standardise contracts, harmonise market rules and ensure global best practices in clearing and settlement.
Also speaking, the Director-General of SEC, Dr. Emomotimi Agama, said the platform will introduce a credible, market-driven Nigeria Gas Price Index reflecting real domestic and regional demand and supply dynamics.
He added that licensed trading houses will act as market makers, boosting liquidity and supporting risk management through standardised contracts.
The National Security Adviser (NSA), Nuhu Ribadu, represented by his Special Adviser on Oil and Gas, Goodluck Ebelo, assured stakeholders of enhanced security across oil and gas assets.
He emphasised that Nigeria’s 200 trillion cubic feet of gas reserves can only be fully optimised in a secure operating environment.
He noted that under President Bola Ahmed Tinubu, significant progress has been made in strengthening security around critical infrastructure through the NSA-led Joint Coordination Platform, which integrates the operations of the military, police, DSS, NSCDC, NNPC Ltd., NMDPRA, NUPRC and state governments.
He also highlighted improved community engagement and recent peace efforts in Ogoniland.
Once operational, the JEX Market platform is expected to enable efficient and transparent gas trading, stimulate investment, create jobs, deepen government revenue and enhance auditing of energy transactions.
Analysts say it will fast-track Nigeria’s Decade of Gas ambitions and position the country as a continental hub for energy trading and industrial development.
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