Why we awarded gas trading, other licences to JEX Markets – NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has justified why it issued licenses to JEX Market to establish and operate a Gas Clearing House and Settlement Platform for the trading of natural gas and its derivatives. It said the decision was taken in collaboration with the Securities and Exchange Commission (SEC). Daily Trust […]

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has justified why it issued licenses to JEX Market to establish and operate a Gas Clearing House and Settlement Platform for the trading of natural gas and its derivatives.

It said the decision was taken in collaboration with the Securities and Exchange Commission (SEC).

Daily Trust reports that the NMDPRA, established under the Petroleum Industry Act (PIA) 2021, is mandated to regulate the technical and commercial activities of Nigeria’s midstream and downstream petroleum sectors. Its core functions include licensing, monitoring and ensuring compliance in gas and petroleum product operations, with the aim of creating a more transparent, efficient, and competitive energy market.

JEX Market, on the other hand, is a Nigerian energy company focused on revolutionising the country’s gas and energy markets. The company aims to introduce a transparent, efficient, and standardised platform for trading natural gas and its derivatives.

• FG, firm unveil N237bn digital infrastructures across Nigeria
• Gunmen abduct herders returning from market

The issuance of the licences, it was learnt, followed a rigorous and extensive due process.

The platform, the first of its kind on the African continent, is expected to become operational soon, placing Nigeria in its rightful position as the regional hub for energy transactions. It will enable more efficient, transparent, and swift trading of natural gas commodities across Nigeria and Africa, driving the sector toward maturity.

As the market develops, the platform is expected to attract more investments, create employment, generate government revenue, and enhance transaction auditing by relevant agencies. The licensing also marks a milestone coinciding with two years of President Bola Ahmed Tinubu’s administration and aligns with Nigeria’s Decade of Gas initiative, which aims to transform the energy landscape by 2030.

The achievement underscores effective collaboration between NMDPRA and SEC, showcasing the benefits of regulatory synergy. It also highlights the rise of bold domestic entrepreneurial initiatives, supported by a conducive regulatory environment.

This milestone is anticipated to inspire further strategic investments in the sector, helping to reduce energy poverty, boost industrialisation, and secure Nigeria’s future as a competitive and sustainable energy powerhouse.