FG Unveils Pioneer Gas Trading License, Clearing Authorization

The Federal Government on Thursday unveiled Nigeria’s first Gas Trading License alongside a Clearing House and Settlement Authorization, presented by the Executive Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed, to Jex Markets Ltd in Abuja.

Engr. Ahmed said the license represents a major step toward transforming Nigeria’s gas market into a more transparent, efficient and investor-friendly system, noting that despite the country’s 209 TCF of proven gas reserves, the domestic market has long suffered from pricing opacity and limited flexibility.

He explained that the NMDPRA has been implementing strategic provisions of the Petroleum Industry Act, including the Domestic Gas Demand Requirement and wholesale gas supply licensing, to remove bottlenecks and strengthen commercial participation across the midstream sector.

The Gas Trading License, he added, will provide a secure, automated platform for natural gas trading and is expected to deepen market liquidity, enhance contract sanctity and attract sustainable investments into the gas value chain.

“The Authority is also hosting the secretariat of the Decade of Gas programme and partnering with it to unlock the significant gas resource base of Nigeria for domestic consumption and export,” he said.

“Our country is richly endowed with natural gas reserves, but without an efficient, reliable and well-regulated market, we cannot realize the full value of this resource. The Gas Trading Licence introduced today creates a regulated space where traders can do business safely and investors can operate with confidence,” the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated.

Stakeholders including the National Security Adviser, Nuhu Ribadu, and the House Committee on Petroleum Resources (Downstream) hailed the development as a turning point for energy security, industrial growth and investor confidence, stressing that the new license will strengthen transparency, promote competitiveness and support Nigeria’s broader economic diversification goals.