By: The sun

The Nigerian federal government has launched Africa’s first licensed gas trading and exchange platform, marking a significant step in the country’s efforts to develop its domestic gas market. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in partnership with the Securities and Exchange Commission (SEC), granted a licence to JEX Markets Limited to establish an electronic platform for wholesale natural gas trading, settlement, and clearing.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated that the platform is designed to bring transparency, efficiency, and investment security to the gas sector, aligning with President Bola Tinubu’s "Renewed Hope Agenda" that positions natural gas as central to national energy security and industrialisation. He emphasised that a well-regulated market is essential for unlocking the value of Nigeria's vast gas reserves, estimated at over 209 trillion cubic feet.

The initiative addresses longstanding challenges in the domestic gas market, including pricing opacity, high transaction costs, and contract sanctity issues. Officials highlighted that the platform will foster a credible, market-driven gas price index, attract investment, and support the growth of gas utilisation in power, industry, and transport sectors, in line with the provisions of the Petroleum Industry Act (PIA) 2021.