The Federal Government has issued Nigeria’s first gas trading licence as part of its efforts to build a transparent, competitive and investment-ready gas market in line with the Petroleum Industry Act (PIA).
The licence, presented in Abuja yesterday to JEX Markets Limited by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), is expected to strengthen market confidence, boost liquidity and support price discovery in a sector sitting on 209 trillion cubic feet (TCF) of proven gas reserves.
Speaking at the ceremony, Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, said the new licence signalled the beginning of a more organised gas trading system where trusted operators could buy and sell gas under clear, enforceable rules.
He described the initiative as fully aligned with President Bola Tinubu’s Renewed Hope Agenda, which identifies natural gas as central to energy security, industrialisation and economic diversification.
Ekpo explained that the licence would promote access, dependability and affordability across the midstream and downstream gas value chain.
According to him, only qualified and credible players would now participate in the trading environment, reducing counterparty risks and promoting fair pricing.
“This is a new chapter in the energy history of our nation. Together, we will unlock the ultimate promise of gas for Nigeria,” the minister said.
In his keynote address, the Chief Executive of NMDPRA, Farouk Ahmed, stated that the issuance of the licence fulfilled Section 159 of the PIA and reflected the regulator’s commitment to building a modern, rules-based gas market that meets global standards.
He noted that despite holding Africa’s largest gas reserves of 209 TCF proven and up to 600 TCF potential, Nigeria’s domestic gas market had remained constrained by opaque pricing, contract disputes and limited investment.
Ahmed said the new trading framework was designed to eliminate those long-standing challenges by enabling automated, real-time transactions, enhancing market access and enforcing transparent settlement processes.
He emphasised that the authority would continue to work with financial regulators, including the Securities and Exchange Commission (SEC), to ensure the robustness of clearing and settlement systems.
“The real test is not today’s ceremony but the transformation that must follow. We will provide a firm, transparent and technology-enabled regulatory structure that gives investors the certainty needed to commit long-term capital,” Ahmed stated.
The National Security Adviser (NSA), Mallam Nuhu Ribadu, pledged continued protection of oil and gas infrastructure nationwide.Represented by his Special Adviser on Oil and Gas, Goodluck Ebelo, the NSA said improved security coordination in the past two years had reduced pipeline breaches, dismantled illegal refining networks and helped restore confidence across the energy sector.
Also, the Director-General of SEC, Dr Emomotimi Agama, described the event as a shift from viewing gas merely as a physical commodity to recognising it as a tradable financial asset.
He said the introduction of a regulated trading platform would deepen the financial market, strengthen risk management and attract new investment products linked to gas.
“To the gas producers, distributors and major off-takers, engage with this platform. See it not as a constraint, but as a liberation; a tool for better risk management, portfolio optimisation, and access to new capital,” Agama emphasised.
