Nigeria has reached a major milestone in its gas sector reform as the Federal Government unveiled the country’s first online gas trading, clearing, and settlement platform. Also known as the Gas Trading Licence, Clearing House, and Settlement Authorization, the platform is designed to bring transparency, efficiency, and competitiveness into the nation’s gas market.
At the launch ceremony in Abuja, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the initiative as a “new dawn” for Nigeria’s gas industry.
He said, “I am pleased to join you today on this occasion of the launch of the first Gas Trading Licence and Clearing House & Settlement Authorization. This milestone event signifies the dawn of a new era where our gas industry will emerge with a transparent, competitive, and investment-ready market.”
Ekpo added that the platform will streamline natural gas trading and ensure transparent pricing, efficient market-driven price determination, and secure payment systems, which he noted are crucial for increasing trust among investors and promoting sustainable growth in the sector.
The Minister commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority, led by its Chief Executive, Farouk A. Ahmed, as well as the Authority’s partnership with JEX Markets Limited, for developing the pioneering platform.
He explained that the introduction of the Gas Trading Licence marks the beginning of a regulated gas market that will enable credible traders to operate safely, improve business planning, and attract investment by protecting capital and the public interest.
Speaking at the event, Ahmed described the formal presentation of the Gas Trading Licence as the outcome of effective collaboration between the Authority and industry stakeholders.
He said it reaffirms the commitment of the Authority to achieving one of the key objectives of the Petroleum Industry Act, which is to grow the domestic gas sector into a dynamic and competitive trading and supply hub.
Ahmed stressed that “the true test of licensing JEX Markets is not in the ceremony of today, but in the transformation it must deliver tomorrow.”
He pledged that NMDPRA would support the platform with a firm and transparent regulatory environment, adding, “To ensure that JEX succeeds as Nigeria’s pioneering gas trading, clearing and settlement platform, we will provide a firm, transparent and technology-enabled regulatory framework under the PIA, giving investors the certainty and confidence required to commit long-term capital to the gas value chain.”
The launch also comes at a time when Nigeria is working to unlock the full value of its vast gas reserves, estimated at 209 trillion cubic feet of proven gas and up to 600 trillion cubic feet in potential reserves, making the country Africa’s largest gas holder.
For years, the local gas market has been hindered by unclear pricing, poor contract enforcement, elevated transaction costs, restricted access, and insufficient investment inflows
Ahmed noted that the new trading framework is designed to address these longstanding challenges by establishing a modern platform where wholesale gas transactions are governed by transparent pricing, reliable clearing systems, and standardized trading practices.
He further stated that the platform is one of several changes implemented by the PIA to build a functional and competitive gas market.
These include establishing the Annual Domestic Gas Demand Requirement, implementing the Gas Aggregation Licence, issuing the Wholesale Gas Supply Licence, revising the Gas Transportation Network Code, and introducing a new gas pricing and tariff framework aimed at stimulating industrial growth and investment across the gas value chain.
Ahmed highlighted the significance of developing market liquidity and stated that the Authority will employ regulatory measures to increase involvement among producers, transporters, aggregators, and major off-takers.
He urged market participants to commit to trading volumes, embrace standardized contracts, and maintain market integrity to realize genuine price discovery and cultivate a dynamic trading environment.
He stated that enhancing capacity, increasing industry awareness, and improving data transparency will be expanded to prepare Nigerian businesses for active engagement in the emerging gas economy
With JEX Markets serving as the country’s first licensed platform for gas trading, clearing, and settlement, its performance is expected to influence regional gas integration and strengthen Nigeria’s position as Africa’s reference hub for gas pricing and market activity.
Ahmed congratulated the company for meeting the rigorous licensing criteria and urged it to deploy its global expertise to run a world-class platform anchored on innovation, credibility, and operational excellence.
He also expressed appreciation to President Bola Tinubu and the Ministers of Petroleum Resources for their leadership in advancing the national gas agenda
