The Federal Government on Thursday launched Africa’s first gas trading market, marking a major step toward harnessing Nigeria’s 209 trillion cubic feet of gas reserves. At the 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 market signals a new chapter for Nigeria’s energy sector. He noted that the platform will make gas sales and purchases more seamless, reliable, and cost-effective. Ekpo added that the new structure immediately improves access, dependability, and affordability for power plants, industrial users, commercial operators, and large-scale consumers.
According to him, only credible counterparties will participate in the market, which will strengthen trust in gas sale and procurement agreements. He also explained that standardised reporting and enforced settlements will reduce risks for all players. Moreover, he said a competitive trading environment will lower barriers, promote efficiency, and help reduce overall costs.
PIA Alignment, Price Transparency, and New Investment Signals
NMDPRA Chief Executive Farouk Ahmed said the licence issuance aligns directly with the Petroleum Industry Act (PIA). He stressed that full implementation of the law will unlock major investments and expand gas supply for Nigeria’s power, industrial, and transport sectors. Ahmed noted, however, that the market’s real test will come from how much transformation it delivers. Therefore, he assured stakeholders of a firm, transparent, and technology-driven regulatory framework.
He added that NMDPRA will continue collaborating with the SEC and key financial-market institutions. This collaboration will help harmonise market rules, standardise contracts, and ensure clearing and settlement meet international best practices.
Similarly, SEC Director-General Emomotimi Agama said the trading platform will create a credible, market-driven Nigeria Gas Price Index. He explained that the index will eliminate opacity, promote fair pricing, and boost confidence among producers, transporters, and consumers. Agama also said licensed trading houses will act as market makers, supply liquidity, and support better risk management with standardised contracts.
FG Boosts Security Around Oil and Gas Infrastructure
National Security Adviser Nuhu Ribadu, represented by Special Adviser on Oil and Gas Goodluck Ebelo, assured operators of stronger protection for critical oil and gas assets. He stated that Nigeria’s vast gas reserves can only be fully optimised in a safe and stable environment.
Ribadu said the Tinubu administration has made unprecedented progress in the last two years through the NSA-led Joint Coordination Platform, which brings the military, police, DSS, NSCDC, NNPC Ltd, NMDPRA, NUPRC, and state governments under one intelligence-driven structure. As a result, response times have improved, operational synergy has strengthened, and duplication of efforts has reduced.
He also mentioned deeper engagement with traditional rulers, local leaders, and youth groups, noting that many host communities now act as partners in safeguarding national assets. He referenced the peace restored in Ogoniland and confirmed that talks are ongoing to resume production in shut-in assets for the benefit of the region and the country.