NMDPRA launches gas trading market, licenses JEX markets

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Barbara Bako, Abuja

Nigeria on Thursday took a major step toward creating a fully transparent and investment-ready gas market as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) presented a Gas Trading Licence and a Clearing House and Settlement Authorisation to JEX Markets Limited.…

The event, hosted by NMDPRA in Abuja, is the first of its kind in Africa and is designed to open up structured wholesale gas trading under the Petroleum Industry Act (PIA).

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the licence reinforces government’s push for an efficient and competitive gas market.

“What does this licence mean for the market? First is access… we make gas sale and procurement agreements more trustworthy. Second is dependability… regulated trading reduces counterparty risks. Third is affordability… an open, competitive environment promotes efficiency and reduced costs,” he said.

Authority Chief Executive of NMDPRA, Engr. Farouk Ahmed, said the licence is a turning point for the sector and aligns with the PIA’s vision for a modern gas market.

“The true test of licensing JEX Markets lies not in the ceremony of today, but in the transformation it must deliver tomorro.” he said.

“We will provide a firm, transparent and technology-enabled regulatory framework… and continue to work closely with the Securities and Exchange Commission to harmonize market rules and ensure clearing and settlement arrangements meet the highest global standards,” he added

Ahmed added that NMDPRA’s regulatory instruments are driving market transparency, price discovery, automated trading, liquidity and broader participation in the gas sector.

SEC Director-General, Dr. Emomotimi Agama, said the platform represents a major shift from physical to financial gas trading.

“A platform will generate a credible market-driven Nigerian gas price index… This eliminates opacity, fosters fair pricing, and builds confidence,” he said.

He added that licensed trading houses will “act as major market makers… bringing liquidity and turning gas into a dynamic asset class.”

The initiative is expected to deepen investments, strengthen contract reliability, and position Nigeria as a regional hub for gas trading and pricing.