The Federal Government has launched the Gas Trading License, Clearing House and Settlement Authorisation platform, a system described as a secure and automated solution for natural gas trading. According to officials, the platform is designed to support transparent and market-driven price discovery, faster and more efficient transactions, greater accountability and an investment-ready gas market. Photo: Gwankat Gwamzhi/Radio Nigeria.
At the launch event, the Minister of State for Petroleum Resources, Gas, Dr. Ekperikpe Ekpo, said the Gas Trading Licence Platform aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu. He explained that several gas-focused policies and frameworks, including the Decade of Gas Initiative, the Presidential CNG initiative PiCNG, the Nigerian Gas Flare Commercialization Program NGFCP and recent executive orders on investment promotion and incentives, have continued to make Nigeria’s gas sector attractive for investors across the African continent.
The Minister stated that natural gas is expected to play a central role in energy security, industrialization and economic diversification. He said President Tinubu’s vision requires a regulatory environment that is predictable, trusted and designed to unlock value. Ekpo noted that Nigeria, despite being richly endowed with some of the world’s largest natural gas reserves, could face setbacks if the market is not efficient, reliable and well-regulated.
He warned that without a strong market structure, “it will not be possible for us to realize the ultimate potential of the resource. The Gas Trading Licence introduced today is decisive on this front, paving the way for a new, regulated market where reliable traders will feel safe doing business, where businesses can plan, and where investors can invest, knowing that it will safeguard both their capital and the public interest.”
Authority Chief Executive of the NMDPRA, Farouk Ahmed, said the Gas Trading Licence and other regulatory instruments administered by the Authority will continue to promote sustainable gas market development by applying global best practices that ensure transparency, efficiency, price discovery and reporting, as well as safe and reliable market trading. He said the platform has improved automated online and real-time market trading, market liquidity, inclusive participation and enhanced market access.
Ahmed explained that since the signing of the PIA in August 2021, the Authority has implemented key provisions for midstream and downstream gas operations, turning the sector into a critical driver of the Nigerian economy. He listed some fully implemented provisions such as the establishment of the annual Domestic Gas Demand Requirement, implementation of the Gas Aggregation Licence, issuance of the wholesale gas supply licence, revision and operationalization of the Gas Transportation Network Code and emplacement of the strategic sector gas pricing and transportation tariff framework.
He advised licensees to be guided by the terms and conditions of the licence and urged them to use global expertise and partnerships to introduce innovation and credibility to the platform.
Professor Zainab Gobir, Director of Economic Regulations and Strategic Planning at the Authority, said the regulatory instrument was created under the Petroleum Industry Act and implemented by the NMDPRA to enable electronic gas trading and payment within Nigeria’s gas industry.
The Office of the National Security Adviser, represented by Nuhu Ribadu, pledged renewed commitment to protecting national gas infrastructure. Members of the National Assembly, including Chairman of the Senate Committee on Downstream, Senator Kawo Samaila, House Committee Chairman on Midstream, Prince Henry Okojie, and Committee Chairman on Downstream, Ugo Chinyere, said the gas subsector has recorded major improvements. They described the Gas Trading License Authorization as a game changer for developing the nation’s gas industry.
