The Federal Government of Nigeria officially launched Africa’s first gas trading market on a Thursday, marking a major step towards fully utilizing the country’s vast 209 trillion cubic feet of gas reserves.

The launch took place at an event held in Abuja, according to Vanguard.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Securities and Exchange Commission jointly presented a Gas Trading Licence, along with Clearing House and Settlement Authorisation, to JEX Market Limited at the ceremony.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, addressed the attendees and declared that the issuance of this license signifies a new chapter in Nigeria’s energy sector. Ekpo highlighted that the new gas trading market will make the processes of gas sales and purchase more seamless, reliable, and cost-effective for all stakeholders.

The Minister elaborated on the immediate benefits of the license, stating: “What does this licence mean for the market? Three things happen immediately. First is access. We make gas sale and procurement agreements more trustworthy for the power generation, industrial, commercial, and large-scale sectors by ensuring only credible counterparties participate in the market. Transparent entry processes build trust.”

He continued, focusing on reliability: “Second is dependability. Reliable and standardised reporting, enforced settlements, and regulated trading reduce counterparty risks and make the supply chain more predictable.”

Finally, he stressed the economic advantage: “Third is affordability. An open, competitive, and well-structured trading environment promotes efficiency, lowers entry barriers, and enables entities to offer reduced costs. This aligns with the administration’s commitment to a contestable and open market that serves consumers, industries, and the transport sector.”

Engr. Farouk Ahmed, the Chief Executive of NMDPRA, confirmed that the decision to license the gas trading house aligns directly with the provisions of the Petroleum Industry Act.

Ahmed further asserted that the full implementation of the PIA’s provisions will unlock extensive investment opportunities within the gas sector and significantly enhance supply across the power, industrial, and transportation sectors.

The NMDPRA Chief Executive outlined the regulatory commitment to the new market’s success: “As the regulator of Nigeria’s midstream and downstream sector, the Authority recognises that the true test of licensing JEX Markets lies not in today’s ceremony, but in the transformation it must deliver. To ensure success, we will provide a firm, transparent, and technology-enabled regulatory framework under the PIA, giving investors the certainty and confidence to commit long-term capital.” He also detailed collaboration efforts: “We will also continue working closely with sister regulators, including SEC, and key financial-market institutions to harmonize market rules, standardise contracts, and ensure clearing and settlement arrangements meet global best practices.”

Dr. Emomotimi Agama, the Director-General of SEC, noted in his remarks that the new platform is expected to produce a credible, market-driven Nigeria Gas Price Index that accurately reflects real domestic and regional demand and supply. The SEC Director-General emphasized the resulting benefits for pricing confidence, saying: “This eliminates opacity, fosters fair pricing, and enhances confidence among producers, transporters, and consumers.”

Dr. Agama also added that the newly licensed trading houses will function as market makers, thereby providing liquidity and enabling effective risk management through standardized contracts. This mechanism is intended to attract capital and transform gas into a dynamic asset class.

Mallam Nuhu Ribadu, the National Security Adviser, speaking through his Special Adviser on Oil and Gas, Mr. Goodluck Ebelo, offered assurance to all stakeholders regarding enhanced security around the oil and gas infrastructure to ensure safe operations nationwide.

Ribadu’s representative stated that Nigeria’s massive gas reserves, which exceed 200 trillion cubic feet, can only be fully optimized within a secure and stable operating environment.

Detailing the progress made in infrastructure security, the NSA’s representative said: “In the past two years, under President Bola Ahmed Tinubu, the Federal Government has made unprecedented progress in securing oil and gas infrastructure nationwide.”

He explained the operational strategy: “Through the NSA-led Joint Coordination Platform, the military, police, DSS, NSCDC, NNPC Ltd, NMDPRA, NUPRC, and state governments now operate under a unified, intelligence-driven structure. This has improved response time, strengthened operational synergy, and eliminated duplication of efforts.”

The importance of community engagement was also highlighted: “We have also deepened engagement with traditional rulers, local leaders, and youth groups, turning host communities into partners in safeguarding national assets. Under the direct supervision of Mr. President, peace was brokered in Ogoniland. Efforts are ongoing to conclude negotiations and restore production in those assets for the benefit of the people and the nation.”