Nigeria has launched its first gas trading licence alongside a new Clearing House and Settlement System. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) unveiled both innovations on Thursday in Abuja. The move aims to create a more transparent and competitive gas market.
New Licence Targets Clear Pricing and Safer Transactions
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the initiative supports President Bola Tinubu’s energy-security agenda. Therefore, he stressed that Nigeria must shift from opaque deals to structured market trading. As a result, investors will gain confidence, and businesses will find it easier to plan.
Ekpo added that Nigeria holds one of the world’s largest gas reserves. Yet, the country has struggled to unlock full value due to weak market structures. With this reform, pricing will become clearer, transactions safer, and long-term investment more attractive.
NMDPRA Activates Key PIA Requirement
The NMDPRA issued the first Gas Trading Licence to JEX Markets Limited. Authority Chief Executive Farouk Ahmed said the platform fulfils a major provision of the Petroleum Industry Act. Moreover, he explained that automated trading and better price discovery will reduce market risk.
Ahmed also confirmed that the agency will work with the Securities and Exchange Commission. Through this collaboration, regulators will harmonise rules, standardise contracts and strengthen market infrastructure. He said these steps will help build a modern and reliable trading system.
Security Agencies and SEC Support the New Platform
National Security Adviser Nuhu Ribadu, represented by Special Adviser Goodluck Ebelo, said improved security has boosted investor confidence. In addition, coordinated operations have reduced vandalism and illegal refining. Consequently, energy corridors are now safer for critical gas investments.
Similarly, SEC Director General Emomotimi Agama said the clearing platform marks a shift toward gas as a financial asset. He noted that, with a credible price index, industrialisation and energy stability will improve.
