The Federal Government on Thursday launched the nation’s first Gas Trading Licence alongside the Clearing House and Settlement Authorisation, marking what it described as a major step toward creating a transparent, competitive and investment-ready natural gas market.
The initiative was unveiled by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, at an event held at the Transcorp Hilton, Abuja.
Ekpo said the new licensing regime and market structure are fully aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which positions natural gas as the centrepiece of Nigeria’s energy security, industrialisation and economic diversification strategy.
He praised the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), under the leadership of Authority Chief Executive Farouk A. Ahmed, as well as JEX Markets Limited, for their collaborative role in developing the digital platform that will facilitate gas trading, transparent pricing, efficient price discovery and secure settlements.
According to the Minister, despite Nigeria’s vast natural gas reserves, the country cannot unlock its full economic potential without an efficient, well-regulated and dependable marketplace. The new Gas Trading Licence, he said, provides the governance structure needed to instill investor confidence, protect consumers and enforce global best practices.
Ekpo noted that the licence is anchored on strict regulatory benchmarks covering technical competence, commercial capability, financial soundness and responsible operations. Licensees are also mandated to comply with rules governing gas metering, tariffs, pricing and transaction assignments in line with the Petroleum Industry Act (PIA).
Highlighting its immediate impact, the Minister said the licensing framework will ensure three major outcomes:
Access, by admitting only credible players to foster trust and reduce market uncertainty;
Dependability, through standardised reporting and regulated settlements that minimise counterparty risks; and
Affordability, by promoting competition, lowering entry barriers and enabling pricing efficiencies for consumers and industries.
He added that the reforms are pivotal to the success of the Decade of Gas initiative and will attract private investments into gas processing and transportation while boosting industrialisation.
Ekpo urged industry players to build responsible partnerships, encouraged off-takers to leverage the new structure for reliable energy supply, and called on financial institutions to support the system through improved lending, guarantees and infrastructure financing.
“With this historic Gas Trading Licence, we open a new chapter in Nigeria’s energy history—one defined by transparency, competitiveness and growth,” the Minister said.