The Federal Government has taken a significant step toward establishing a transparent and competitive natural gas market with the launch of the nation’s first Gas Trading License, alongside a Clearing House and Settlement Authorization.
The initiative was unveiled on Thursday by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, at a ceremony in Abuja.
He described the move as a critical development in aligning the sector with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes natural gas as a cornerstone for energy security, industrialization, and economic diversification.
Ekpo commended the collaborative efforts of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), led by Authority Chief Executive Farouk A. Ahmed, and JEX Markets Limited.
He noted that their partnership was instrumental in developing the digital platform necessary to facilitate gas trading, ensure transparent pricing, enable efficient price discovery, and guarantee secure settlements.
Addressing the audience, the Minister emphasized that while Nigeria possesses vast natural gas reserves, the country’s full economic potential can only be realized through an efficient, well-regulated, and dependable marketplace.
He stated that the new Gas Trading Licence provides the necessary governance structure to instill investor confidence, protect consumers, and enforce global best practices.
The Minister explained that the licensing regime is anchored on strict regulatory benchmarks, requiring licensees to demonstrate technical competence, commercial capability, financial soundness, and responsible operations.
“Furthermore, all operations must comply with the Petroleum Industry Act (PIA) regulations regarding gas metering, tariffs, pricing, and transaction assignments.” He declared.
Highlighting the expected impact of the framework, Ekpo noted that it would ensure access by restricting the market to credible players, thereby fostering trust.
He added that the system is designed to enhance dependability through standardized reporting that minimizes counterparty risks, while also driving affordability by promoting competition and lowering entry barriers for consumers and industries.
Describing the reforms as pivotal to the success of the Decade of Gas initiative, Ekpo stated that the new structure is expected to attract private investment into gas processing and transportation.
He called on industry players to forge responsible partnerships and urged financial institutions to support the system through improved lending, guarantees, and infrastructure financing.
Concluding his remarks, the Minister declared that the historic launch opens a new chapter in Nigeria’s energy history, defined by transparency, competitiveness, and sustainable growth.