In a major step toward transforming Nigeria’s energy sector, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in collaboration with the Securities and Exchange Commission (SEC), has awarded Gas Trading, Clearing, and Settlement licences to JEX Markets.
The move officially authorizes JEX Markets to establish and operate a Gas Clearing House and Settlement Authorisation Platform, marking the continent’s first commodity exchange for natural gas and its derivatives.
“This is one of the game-changing outcomes of the PIA 2021,” the statement noted, hailing it as “a testimony to the commitment and capacity of the JEX Market as a competent energy commodity trader and an exchange operator.”
According to the authorities, the rigorous vetting process led to the issuance of three key approvals: a Gas Trading Licence, a Gas Clearing House and Settlement Authorisation from the NMDPRA, and an SEC approval to operate as a licensed commodity exchange.
The new platform is expected to streamline, digitize, and enhance transparency in gas trading operations across Nigeria and the wider African region.
“The platform would allow for more efficient, transparent and swift trading of natural gas commodities in Nigeria and the African Region,” officials stated. They emphasized the move would attract investment, create jobs, boost government revenue, and promote energy auditing and accountability.
This development comes as the country marks two years of President Bola Ahmed Tinubu’s administration, with officials describing the initiative as “a clear indication that the decade of gas programme is well on track to achieve its objectives by the year 2030.”
“This is a shining example of what happens when regulatory synergy is achieved,” the report noted, highlighting the cooperation between NMDPRA and the SEC.
Industry insiders believe the establishment of the platform represents a turning point for Nigeria’s energy ecosystem. It positions the country as the leading energy trading hub in Africa, and signals a renewed push toward energy self-sufficiency and industrial growth.
“This achievement would provide further impetus to other strategic undertakings by players in the energy sector,” the statement said, projecting a future where Nigeria is “weaned from energy poverty” and established as a globally competitive energy economy.
