.As Authority and Jex Markets moves to unlock Nigeria’s gas potentials
CHIGOZIE AMADI
Engr. Farouk Ahmed, the Executive Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has presented a Gas Trading License and Clearing House and Settlement Authorization to Jex Markets Ltd, marking a significant milestone in Nigeria’s gas industry.
Speaking at the presentation ceremony in Abuja, Engr. Ahmed emphasized that the license would enhance the country’s gas market, making it more transparent, efficient, and inclusive.
He noted that Nigeria has vast gas reserves, with over 209 trillion cubic feet (TCF) of proven gas reserves, but the domestic gas market remains underdeveloped due to pricing opacity, high transaction costs, and limited flexibility.
“Nigeria holds over 209 trillion cubic feet (TCF) of proven gas reserves, the largest in Africa and an estimated 600 TCF of potential reserves.
Yet, despite this wealth, our domestic gas market has remained underdeveloped and constrained by pricing opacity, high transaction costs, limited flexibility, market illiquidity, poor sanctity of gas contracts, restricted access to gas and low investments in the sector”.
The NMDPRA, under Engr. Ahmed’s leadership, has implemented key provisions of the Petroleum Industry Act (PIA) to transform the gas sector, including establishing the annual Domestic Gas Demand Requirement, implementing the Gas Aggregation Licence, and issuing wholesale gas supply licenses.
The Gas Trading License issued to Jex Markets Ltd is expected to promote sustainable development of the gas market, ensure transparency and efficiency, and provide a secure, automated platform for natural gas trading.
“The Authority is also hosting the secretariat of the Decade of Gas program and partnering with the program to unlock the significant gas resource base of Nigeria for domestic consumption and export”.
Engr. Ahmed assured that the NMDPRA would provide a firm, transparent, and technology-enabled regulatory framework to support Jex Markets Ltd and drive participation in gas trading.
Engr. Ahmed congratulated Jex Markets Ltd on fulfilling the requirements for the pioneer Gas Trading Licence in Nigeria and urged them to leverage their global expertise and partnerships to make the platform a world-class exchange.
In his keynote address, Minister of State for Petroleum Resources (Gas), His Excellency Rt. Hon. Ekperikpe Ekpo (Ph.D), hailed the issuance of a Gas Trading License to JEX Markets Limited as a significant milestone in the development of Nigeria’s gas industry.
Ekpo stated that the license marks the dawn of a new era in Nigeria’s gas industry, characterized by transparency, competitiveness, and investment readiness. He expressed his gratitude to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and JEX Markets Limited for their efforts in developing an online platform for gas trading and exchange.
The Minister emphasized that the launch of the Gas Trading License aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which positions natural gas as a key driver of energy security, industrialization, and economic diversification. He noted that the license provides a regulatory environment that is predictable, trusted, and designed to unlock value.
“Our country is richly endowed with natural gas reserves, among the biggest in the world, but if the underlying market where the gas will flow is not efficient, reliable, and well-regulated, it will not be possible for us to realize the ultimate potential of the resource
“The Gas Trading Licence introduced today is decisive on this front, paving the way for a new, regulated market where reliable traders will feel safe doing business, where businesses can plan, and where investors can invest, knowing that it will safeguard both their capital and the public interest”
The Minister highlighted the significance of the Gas Trading License, stating that it will provide access to trustworthy gas sale and procurement agreements, ensure dependable supply chains, and promote affordability through a competitive and open market. He urged industry players to develop partnerships and trade responsibly, and encouraged off-takers to take advantage of the new structure to ensure stable gas supply.
He also thanked the NMDPRA for its efforts in regulating and monitoring midstream and downstream operations, and assured that the license will facilitate sound lending practices, enhance credit guarantees, and foster long-term value.
The issuance of the Gas Trading License is expected to strengthen the level of industrialization, attract private investments, and promote economic growth driven by Nigeria’s natural resource endowment.
In his remarks, the National Security Adviser (NSA), Nuhu Ribadu, noted that the achievement represents a decisive step in the Federal Government’s commitment to actualizing the Decade of Gas Agenda and unlocking the full potential of Nigeria’s vast natural gas resources.
Represented by his Special Assistant on Oil and Gas, Goodluck Ebelo, the NSA
emphasized that a robust gas economy, anchored on over 200 trillion cubic feet (TCF) of proven gas reserves, can only thrive within a secure and stable operating environment. He highlighted the progress made in securing oil and gas infrastructure nationwide, including the decline in major pipeline breaches, dismantling of illegal refining networks, and arrest and prosecution of notorious oil theft syndicates.
The Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikeagwuonu Ugochinyere, also praised the issuance of the Gas Trading License, stating that it marks a defining step towards the transformation of Nigeria’s gas and energy markets.
Ugochinyere noted that the creation of an electronic gas trading and exchange platform introduces transparency into pricing, strengthens price discovery, secures transactions, and opens the market to a wider range of participants. He commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRAU) and JEX Markets Limited for their efforts in developing the platform.
The issuance of the Gas Trading License is expected to promote transparency, competitiveness, and investment readiness in Nigeria’s gas industry and contribute to the country’s energy security and economic growth, he stated.
Ugochinyere assured that the National Assembly, through his Committee, remains committed to providing strong oversight and supportive legislation to ensure that initiatives like this deliver maximum value to Nigerians.
