The Securities and Exchange Commission (SEC) on Thursday urged banks and insurers to mobilize capital to support the “entire gas value chain” following the official launch of Nigeria’s first online gas trading, clearing, and settlement platform by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The SEC Director-General, Dr. Emomotimi Agama, made the call at the launch event held in Abuja.
“To the financial community banks, asset managers, and insurers: develop the products. Create funds, structured notes, and hedging instruments linked to this new asset class. Mobilize capital to support the entire value chain,” he said.
This comes alongside the presentation of a Gas Trading License (GTL) and Clearing House and Settlement Authorization to Jex Markets Limited for the trading and settlement of wholesale gas in Nigeria.
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Speaking virtually, Agama called for a collaborative journey, emphasizing that the platform launch is not an end but a beginning, noting that newly licensed entities carry a great responsibility as pioneers.
According to him, commitment to the highest standards of compliance, ethics, and professionalism by licensees will determine the pace at which the gas market gains depth and global respect.
To gas producers, distributors, and major off-takers, Agama urged them to engage with the platform.
“See it not as a constraint but as a liberation—a tool for better risk management, portfolio optimization, and access to new capital,” he advised.
He described the development as foundation-laying for a Nigeria capable of transitioning from a gas-producing nation to a gas-trading hub for the region.
He emphasized the need for relevant stakeholders and authorities to leverage finance to fuel real economic growth and diversification, while pledging the SEC’s commitment to collaborate with the Ministry of Petroleum Resources, the NMDPRA, and all stakeholders to nurture the gas market with wise, progressive, and stability-focused regulation.
PIA Innovation
- In his remarks, the Chairman, House Committee on Petroleum Resources (Downstream), Hon. Ikeagwuonu Ugochinyere, said the creation of an electronic gas trading and exchange platform is significant as it introduces transparency into pricing, strengthens price discovery, secures transactions, and opens the entire market to a wider range of participants—big and small.
- He noted that the development reflects the type of innovation the Petroleum Industry Act (PIA) envisioned when it sought to modernize governance and create a more open, investment-friendly gas market.
- He added that the National Assembly will provide strong oversight and supportive legislation to ensure that the initiative delivers maximum value to Nigerians.
What You Should Know
Earlier today, Nairametrics reported that the Federal Government of Nigeria officially launched the country’s first online gas trading, clearing, and settlement platform.
- Farouk A. Ahmed, CEO of NMDPRA, described the formal presentation of the Gas Trading License as the result of successful collaboration between the Authority and industry stakeholders.
- He said it also reaffirms the Authority’s commitment to achieving one of the core objectives of the PIA: the growth of the domestic gas sector into a dynamic and competitive trading and supply hub.
Ahmed added that as the regulator of Nigeria’s midstream and downstream petroleum sector, the Authority recognizes that the true test of licensing JEX Markets is not in the ceremony of today but in the transformation it must deliver tomorrow.
