Nigeria has taken a significant step towards modernizing its gas industry with the launch of the country’s first Gas Trading Licence, alongside a new Clearing House and Settlement System. The initiative, unveiled by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), aims to create a transparent, competitive, and investment-ready gas market. This move is expected to transform the sector from opaque bilateral deals to a structured market where prices, transactions, and payments are visible, standardized, and enforceable.
The Minister of State for Petroleum Resources, Ekperikpe Ekpo, described the launch as a key component of President Bola Tinubu’s energy-security agenda. Ekpo emphasized that clear rules and trusted market participants will reduce risk, deepen liquidity, and attract capital into the gas value chain. The new framework will enable smooth natural gas business, transparent pricing, efficient price determination, and secure payment mechanisms, aligning with national energy policies and global best practices.
The NMDPRA issued the Gas Trading Licence to JEX Markets Limited, unlocking a key provision of the Petroleum Industry Act (PIA) and laying the foundation for Nigeria’s ambition to become a regional gas trading hub. The Authority’s Chief Executive, Farouk Ahmed, noted that the new regime seeks to correct issues such as pricing opacity, weak contract performance, and low investment through automated trading, transparent price discovery, and enforceable settlement.
The National Security Adviser, Nuhu Ribadu, represented by his Special Adviser on Oil and Gas, Goodluck Ebelo, stressed that the success of the new trading architecture depends on a safe operating environment. Ribadu highlighted the progress made in securing oil and gas infrastructure nationwide, with coordinated security operations reducing pipeline vandalism, illegal refining networks, and crude theft.
The Securities and Exchange Commission (SEC) authorized the Clearing House, describing the initiative as a major shift from the physical handling of gas to its emergence as a fully tradable financial asset. The Director General, Emomotimi Agama, said the new framework will create a credible Nigeria Gas Price Index, enable market-making, de-risk infrastructure investment, and broaden Nigeria’s capital market with a new asset class.
The launch of the Gas Trading Licence and Clearing House marks a significant milestone in Nigeria’s efforts to develop its gas industry and achieve its national ambition of becoming a major player in the regional energy market. With its vast natural gas reserves, Nigeria is poised to unlock the full potential of its resources and contribute to increased national revenue and greater economic stability.