By Abubakar Yunusa
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in collaboration with the Securities and Exchange Commission (SEC), has issued gas trading and settlement licences to JEX Market.
In a statement by George Ene-Ita, director of the public affairs unit of the NMDPRA, the regulators said JEX Market was licensed to establish and operate a gas clearing house and settlement authorisation platform, “the first of its kind in Africa”.
Ene-Ita said the platform will serve as a commodity exchange for the trading of natural gas and its derivatives, enabling more transparent and efficient transactions across the value chain.
He said the approval followed a rigorous due diligence process that led to the issuance of a gas trading licence as clearing house and, settlement authorisation by NMDPRA, along with the SEC’s approval for registration as a licensed commodity exchange.
“The platform is expected to become operational soon, making it the first of its kind on the African Continent, thereby placing Nigeria in its rightful place as the hub for energy transactions in the region,” the statement reads.
“The platform would allow for more efficient, transparent and swift trading of natural gas commodities in Nigeria and the African region, thereby accelerating the growth of the Nigerian energy sector towards a mature market.
“As the market matures, it encourages more investment into the sector, creates more employment opportunities and wealth creation, increases government revenue and allows easier auditing of transactions by relevant agencies and parties.
“These licences are coming at an opportune time marking the two years of the progressive leadership of President Bola Ahmed Tinubu (GCFR), and as Nigeria approaches the halfway mark of the Decade of Gas journey.”
Ene-Ita added that the platform aligns with the government’s ‘Decade of Gas’ agenda, which aims to transform Nigeria into a major gas-powered economy by 2030.
“It also signals improved regulatory synergy between key institutions, with both the NMDPRA and SEC collaborating to promote energy market reforms,” he said.
“The initiative marks a very good example of the values the nation stands to gain when agencies work together.”
Ene-Ita also said JEX Market platform is expected to “wean Nigeria from energy poverty, consolidate the country as the energy hub of the continent, spur industrialisation and deepen the hope for a sustainable and competitive future for the country”.
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