Nigeria has taken a significant step toward modernising its gas industry with the launch of the country’s first Gas Trading Licence, together with a new Clearing House and Settlement System. Unveiled by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the initiative aims to create a transparent, competitive, and investment‑ready gas market. It is expected to shift the sector from opaque bilateral deals to a structured market where prices, transactions and payments are visible, standardised 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. He stressed 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 crucial provision of the Petroleum Industry Act (PIA) and laying the foundation for Nigeria’s ambition to become a regional gas‑trading hub. Authority Chief Executive Farouk Ahmed noted that the regime seeks to correct pricing opacity, weak contract performance and low investment through automated trading, transparent price discovery and enforceable settlement.
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 progress 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) authorised 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. Director General Emomotimi Agama said the 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 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, increase national revenue and enhance economic stability.
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