The Securities and Exchange Commission (SEC) has called on Nigerian banks, insurers, and asset managers to mobilize capital to strengthen the country’s gas trading sector. The call was made during the launch of Nigeria’s first online gas trading, clearing, and settlement platform by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja. The SEC emphasized that this initiative is crucial for boosting investment and efficiency across the entire gas value chain.
Dr. Emomotimi Agama, SEC Director-General, urged financial institutions to create innovative products such as structured notes, funds, and hedging instruments tailored to this emerging market. “Mobilize capital to support the entire value chain,” he said, highlighting the critical role the financial sector will play in making the gas market more dynamic and competitive.
The launch also marked the official presentation of a Gas Trading License (GTL) and Clearing House and Settlement Authorization to JEX Markets Limited, authorizing them to manage wholesale gas trading and settlement in Nigeria. Agama emphasized that the platform represents a beginning, not an end, and called on all licensed entities to uphold the highest standards of ethics, compliance, and professionalism.
Gas producers, distributors, and major off-takers were encouraged to engage actively with the platform, which offers tools for risk management, portfolio optimization, and access to new capital. The SEC described the development as laying the foundation for Nigeria to evolve from a gas-producing nation into a regional gas-trading hub, with finance and collaboration driving real economic growth.
Highlighting the transparency and innovation introduced by the platform, Hon. Ikeagwuonu Ugochinyere, Chairman of the House Committee on Petroleum Resources (Downstream), noted that the initiative aligns with the Petroleum Industry Act’s goal of modernizing governance and creating an investment-friendly gas market. NMDPRA CEO Farouk A. Ahmed added that the platform demonstrates a commitment to transforming Nigeria’s domestic gas sector into a competitive and globally respected trading hub.
source: Nairametrics