In one of the most strategic collaborations between government agencies, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in conjunction 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, which would serve as a commodity exchange platform where natural gas and its derivatives would be traded 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.
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“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.”
The agency said the issuance of the Gas Trading Licence and Gas Clearing House and Settlement Authorisation license followed a rigorous and extensive due process procedure by the NMDPRA and SEC’s approval of JEX Market as a licenced commodity exchange.
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The NMDPRA said the platform is expected to become operational soon, making it the first of its kind on the African continent thereby placing Nigeria in its rightful place as the hub for energy transactions in the region.
“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.
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“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.
“It is then appropriate to opine that the establishment of the exchange platform is indeed a testimony to the success of the policy decisions of the current administration and a clear indication that the Decade of Gas programme is well on track to achieve its objectives by the year 2030.”
The NMDPRA praised SEC for collaborating with it to achieve this milestone.
“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 establishment of the platform, the downstream regulator said, is a step further in the renaissance of the Nigerian Energy landscape being championed by domestic entrepreneurs who are increasingly executing bold initiatives under the conducive environment being provided by regulatory agencies.
READ ALSO: NMDPRA denies halting gas supply to GenCos
“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 NMDPRA was created in August 2021 in line with the Petroleum Industry Act 2021 which provides legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry as well as development of host communities.
PHOTO: Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Farouk Ahmed
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