FG, SEC Approve JEX Market for Gas Trading and Settlement in Nigeria

• The NMDPRA and the Securities and Exchange Commission licensed JEX Market to operate Nigeria’s first Gas Clearing House and Settlement Authorisation Platform
• This platform aims to enhance transparent, efficient trading of natural gas and its derivatives, positioning Nigeria as a regional energy hub in Africa.
• The initiative aligns with the Petroleum Industry Act 2021 and the government’s Decade of Gas programme, supporting industrialisation, investment, and economic growth

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Securities and Exchange Commission (SEC) have granted licenses to JEX Market to establish and run a Gas Clearing House and Settlement Authorisation Platform.

This is one of the most strategic partnerships between government agencies and would function as a commodity exchange platform for the trading of natural gas and its derivatives in Nigeria.

“The issuance of the licences is one of the game-changing outcomes of the PIA 2021 and the product of the strategic leadership acumen of His Excellency, President Bola Ahmed Tinubu (GCFR),” the NMDPRA said in a statement on Tuesday.

“Indeed, it is also a testimony to the commitment and capacity of the JEX Market as a competent energy commodity trader and an exchange operator.”

According to the agency, the NMDPRA and SEC approved JEX Market as a licensed commodity exchange after a thorough and stringent due process that resulted in the issuance of the Gas Trading Licence and Gas Clearing House and Settlement Authorisation license.

According to the NMDPRA, the platform is anticipated to be live shortly, making it the first of its type on the African continent and reaffirming Nigeria's legitimate position as the regional centre for energy transactions.

“The platform would allow for more efficient, transparent and swift trading of natural gas commodities in Nigeria and the African Region, thereby accelerating the growth of Nigerian Energy sector towards a mature market,” the agency said.

“As the market matures, it encourages more investment into the sector, creates more employment opportunities and wealth creation, increases government revenue and allows easier auditing of transactions by relevant agencies and parties.

SEC was commended by the NMDPRA for working with it to accomplish this milestone.

According to the downstream regulator, the platform's creation is a step closer to the Nigerian energy landscape's revival, which is being supported by local business owners who are increasingly taking risks in an atmosphere that is supportive of their endeavours.

“It is expected that this achievement would provide further impetus to other strategic undertakings by players in the energy sector to wean Nigeria from energy poverty, consolidate the country as the energy hub of the continent, spur industrialisation and deepen the hope for a sustainable and competitive future for the country,” the NMDPRA added.

The Petroleum Industry Act 2021, which establishes the legal, governance, regulatory, and financial framework for the Nigerian petroleum industry as well as the development of host communities, led to the creation of the NMDPRA in August 2021.

FG to release N400 billion to Nigerians to start gas business

Legit.ng reported that the Nigerian government has announced plans to provide another N400 billion gas infrastructure fund to beneficiaries of the initiative in two weeks.

The minister of state for petroleum resources (gas), Ekperikpe Ekpo, disclosed this during the groundbreaking event of the 10MMSCF CNG Mother Station plant at Esit Eket local government area of Akwa Ibom state on Thursday, March 20, 2025.

The N400 billion fund comes after the government released the N122 billion gas infrastructure fund in 2024.

Source: Legit.ng