The Securities and Exchange Commission (SEC) has urged banks and insurers to mobilize capital to strengthen Nigeria’s growing gas trading value chain following the launch of an online platform.
Okay News reports that SEC Director-General Dr. Emomotimi Agama called on financial institutions to develop products, create funds, and introduce hedging instruments linked to the gas market to ensure capital flows across the new trading ecosystem.
The launch included the presentation of a Gas Trading License and Clearing House and Settlement Authorization to Jex Markets Limited, enabling structured wholesale gas trading and enhancing the country’s gas market infrastructure.
Agama emphasized that the platform is a starting point rather than a conclusion, urging newly licensed entities to embrace responsibility and maintain the highest standards of compliance, ethics, and professionalism.
To gas producers, distributors, and major off-takers, he advised engagement with the platform as a tool for better risk management, portfolio optimization, and access to new capital for investment and growth.
He described the initiative as foundational for transforming Nigeria from a gas-producing nation into a regional gas-trading hub with greater visibility and market depth.
Agama highlighted the importance of collaboration among stakeholders and authorities to leverage financial instruments for real economic growth, diversification, and stability in the domestic energy sector.
House Committee on Petroleum Resources Chairman Hon. Ikeagwuonu Ugochinyere noted that the electronic gas trading platform enhances transparency, strengthens price discovery, secures transactions, and broadens participation across Nigeria’s gas trading market.
The development reflects the vision of the Petroleum Industry Act to modernize governance, improve regulatory transparency, and create an investment-friendly environment for the gas sector.
NMDPRA CEO Farouk A. Ahmed affirmed that the Gas Trading License embodies successful collaboration between the Authority and industry stakeholders and represents a step toward transforming Nigeria’s midstream and downstream petroleum sector.
Ahmed reiterated that the true measure of the platform’s success will be its long-term impact on the domestic gas market, rather than the formal ceremony, ensuring that licensing drives tangible growth.
The Federal Government launch of the online platform marks a key milestone in Nigeria’s ambition to become a competitive, transparent, and fully regulated gas-trading economy in West Africa.
