An energy commodity trader and exchange operator JEX Market has been issued licenses to establish and operate a Gas Clearing House and Settlement Authorisation Platform In Nigeria, first of its kind in Africa.
The licenses came as part 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).
Information reaching us at Greenbarge Reporters online newspaper said that the licenses would make JEX Market to be a commodity exchange platform where natural gas and its derivatives would be traded in Nigeria.
The issuance of the licences is said to be one of the game-changing outcomes of the Petroleum Industry Act, 2021 and product of the strategic leadership acumen of President Bola Ahmed Tinubu.
Observers said that the move is a testimony to the commitment and capacity of the company.
The granting of licenses was said to have followed a rigorous and extensive due process, 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.
It is learnt that the platform would soon become operational as first of its kind on the African continent, and would place Nigeria in its rightful place as the hub for energy transactions in the region.
The platform is expected to allow for more efficient, transparent and swift trading of natural gas commodities in Nigeria and the African region, and accelerate the growth of the Nigerian energy sector towards a mature market.
It is gathered that as the market matures, it would encourage more investment into the sector, create more employment opportunities and wealth creation, increase government revenue and allow easier auditing of transactions by relevant agencies and parties.
It is further gathered that the licences are coming at an opportune time marking the two years of the progressive leadership of President Tinubu and as Nigeria approaches the half-mark of the Decade of Gas journey.
An insider said: “it is 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.”
