The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in partnership with the Securities and Exchange Commission (SEC), has issued licenses to JEX Market to establish and operate a gas clearing house and settlement authorisation platform. The platform will serve as a commodity exchange for trading natural gas and its derivatives in Nigeria.
In a statement made available to QEDNG, NMDPRA highlighted the issuance of the licenses as a milestone achievement rooted in the provisions of the Petroleum Industry Act (PIA) 2021 and attributed it to the strategic leadership of President Bola Tinubu.
“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),” NMDPRA stated. “It is also a testimony to the commitment and capacity of the JEX Market as a competent energy commodity trader and an exchange operator.”
The regulatory body noted that the licensing process was rigorous and involved extensive collaboration between the NMDPRA and SEC. With SEC’s approval of JEX Market as a licensed commodity exchange, the platform is set to become operational soon, making it the first of its kind in Africa.
“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 the Nigerian energy sector towards a mature market,” the agency said.
According to the NMDPRA, the establishment of the exchange is expected to encourage more investment in the energy sector, create employment opportunities and drive wealth creation, boost government revenue and simplify transaction auditing by relevant agencies and parties.
The agency emphasised that the initiative aligns with Nigeria’s Decade of Gas programme, which aims to transform the country into a leading gas-powered economy by 2030.
“These licences are coming at an opportune time, marking the two years of the progressive leadership of President Bola Ahmed Tinubu (GCFR) and as Nigeria approaches the half-mark of the Decade of Gas journey,” the statement added. “The exchange platform is a clear indication that the Decade of Gas programme is well on track to achieve its objectives by the year 2030.”
NMDPRA praised the SEC for its collaboration, describing it as a demonstration of the benefits of inter-agency cooperation.
“It is also quite instructive to note the regulatory synergy that led to the attainment of this feat between the NMDPRA and the SEC,” the statement said. “Indeed, it marks a very good example of the values that the nation stands to gain when agencies work together.”
The downstream regulator described the development as a pivotal step in Nigeria’s energy renaissance, championed by domestic entrepreneurs who are leveraging the conducive environment provided by regulatory agencies.
“This achievement provides 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 hope for a sustainable and competitive future for the country,” the NMDPRA concluded.
NMDPRA was established in August 2021 under the PIA 2021, which provides a legal, governance, regulatory, and fiscal framework for the Nigerian petroleum industry and the development of host communities.
