By Obas Esiedesa, Abuja
The Federal Government on Thursday inaugurated Africa’s first gas trading market, taking a major step toward harnessing Nigeria’s 209 trillion cubic feet of gas reserves.
At a ceremony in Abuja, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Securities and Exchange Commission (SEC) jointly issued a Gas Trading Licence, along with Clearing House and Settlement Authorisation, to JEX Market Limited.
Speaking at the event, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the licence marks a new chapter for Nigeria’s energy sector, making gas sales and purchases more seamless, reliable, and cost-effective.
He outlined three key benefits of the licence: Access: Ensures credible counterparties participate in gas sales and procurement, enhancing trust for the power, industrial, commercial, and large-scale sectors.
Dependability: Standardised reporting, enforced settlements, and regulated trading reduce risks and make supply chains predictable.
Affordability: A competitive trading environment lowers costs and removes barriers to entry, aligning with the government’s commitment to an open market.
The CEO of NMDPRA, Engr. Farouk Ahmed, said the licensing aligns with the Petroleum Industry Act (PIA) and will unlock investment opportunities, improve supply across sectors, and ensure a transparent regulatory framework.
The SEC Director-General, Dr. Emomotimi Agama, highlighted that the platform will create a credible Nigeria Gas Price Index, reflecting domestic and regional supply and demand, and provide liquidity and standardized contracts to attract investment.
Represented by his Special Adviser on Oil and Gas, NSA Mallam Nuhu Ribadu assured stakeholders of enhanced security for oil and gas infrastructure, emphasizing that a stable environment is key to fully optimizing Nigeria’s vast gas reserves.
Ribadu noted that under President Bola Ahmed Tinubu, security efforts have improved through the NSA-led Joint Coordination Platform, which integrates military, police, DSS, NSCDC, NNPC, NMDPRA, NUPRC, and state governments, and engages local communities to protect national assets.
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