FG launches Africa’s first gas trading market, licenses JEX

By Obas Esiedesa, Abuja

Federal Government on Thursday took a major step toward fully harnessing Nigeria’s 209 trillion cubic feet of gas reserves with the launch of Africa’s first gas trading market.

At an event in Abuja, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Securities and Exchange Commission (SEC) jointly presented a Gas Trading Licence, as well as Clearing House and Settlement Authorisation, to JEX Market Limited. Speaking at the ceremony, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the licence issuance marks a new chapter in Nigeria’s energy sector. Ekpo noted that the launch of the gas trading market will make gas sales and purchase more seamless, reliable, and cost-effective.

“What does this licence mean for the market? Three things happen immediately. First is access. We make gas sale and procurement agreements more trustworthy for the power generation, industrial, commercial, and large-scale sectors by ensuring only credible counterparties participate in the market. Transparent entry processes build trust. “Second is dependability. Reliable and standardised reporting, enforced settlements, and regulated trading reduce counterparty risks and make the supply chain more predictable.

“Third is affordability. An open, competitive, and well-structured trading environment promotes efficiency, lowers entry barriers, and enables entities to offer reduced costs. This aligns with the administration’s commitment to a contestable and open market that serves consumers, industries, and the transport sector.” On his part, the Chief Executive of NMDPRA, Engr. Farouk Ahmed, said the licensing of the gas trading house is in line with the Petroleum Industry Act (PIA). Ahmed stated that full implementation of the PIA’s provisions will unlock extensive investment opportunities in the gas sector and enhance supply across power, industrial, and transportation sectors. “As the regulator of Nigeria’s midstream and downstream sector, the Authority recognises that the true test of licensing JEX Markets lies not in today’s ceremony, but in the transformation it must deliver. To ensure success, we will provide a firm, transparent, and technology-enabled regulatory framework under the PIA, giving investors the certainty and confidence to commit long-term capital.

“We will also continue working closely with sister regulators, including SEC, and key financial-market institutions to harmonize market rules, standardise contracts, and ensure clearing and settlement arrangements meet global best practices.” In his remarks, the Director-General of SEC, Dr. Emomotimi Agama, said the platform will produce a credible, market-driven Nigeria Gas Price Index that reflects real domestic and regional demand and supply. “This eliminates opacity, fosters fair pricing, and enhances confidence among producers, transporters, and consumers,” he said. He added that licensed trading houses will act as market makers, providing liquidity and enabling effective risk management through standardized contracts—thus attracting capital and transforming gas into a dynamic asset class. Also speaking, the National Security Adviser (NSA), Mallam Nuhu Ribadu, assured stakeholders of enhanced security around oil and gas infrastructure to ensure safe operations nationwide. Represented by his Special Adviser on Oil and Gas, Mr. Goodluck Ebelo, Ribadu said Nigeria’s vast gas reserves, over 200 trillion cubic feet, can only be fully optimized within a secure and stable operating environment. “In the past two years, under President Bola Ahmed Tinubu, the Federal Government has made unprecedented progress in securing oil and gas infrastructure nationwide. “Through the NSA-led Joint Coordination Platform, the military, police, DSS, NSCDC, NNPC Ltd, NMDPRA, NUPRC, and state governments now operate under a unified, intelligence-driven structure. This has improved response time, strengthened operational synergy, and eliminated duplication of efforts. “We have also deepened engagement with traditional rulers, local leaders, and youth groups, turning host communities into partners in safeguarding national assets. Under the direct supervision of Mr. President, peace was brokered in Ogoniland. Efforts are ongoing to conclude negotiations and restore production in those assets for the benefit of the people and the nation.”

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