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). 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.
This followed a rigorous and extensive due process procedure
leading to the issuance of a Gas Trading Licence and Gas Clearing
House and Settlement Authorisation by the NMDPRA and an
Approval for Registration as Licenced Commodity Exchange by the
SEC.
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.
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. 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.
It is also quite instructive to note the regulatory synergy that led to
the attainment of this feat between the NMDPRA and the SEC.
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 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.
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.
