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By Emmanuella Anokam
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday introduced Nigeria’s first Gasoline Buying and selling Licence and Clearing Home and Settlement Authorisation to JEX Markets Restricted, in keeping with the Petroleum Business Act (PIA).
The official presentation was finished in Abuja by Dr Ekperikpe Ekpo, Minister of State Petroleum Assets (Gasoline), Authority Chief Government, Mr Farouk Ahmed, Oscar Onyema, Chairman, JEX Markets, lawmakers and different dignitaries.
The Information Company of Nigeria (NAN) stories that with the event, JEX Markets has been licenced to determine and function a gasoline buying and selling change platform, together with clearing and settlement capabilities, for pure gasoline and its derivatives in Nigeria.
The platform, which is able to act as a commodity change, enabling clear and standardised gasoline sources buying and selling, is the primary of its form in Africa, positioning Nigeria as a possible regional hub for gasoline pricing and vitality market exercise.
The licencing course of included collaboration with the Securities and Alternate Fee (SEC), which additionally authorised JEX as a licensed commodity change.
Ekpo, in his keynote deal with, mentioned the licence would supply quick advantages, together with improved market entry for credible merchants throughout energy, industrial, business and large-scale sectors.
He mentioned the license which aligned with President Bola Tinubu’s Renewed Hope Agenda on vitality safety and financial diversification would supply governance framework and allow a trusted surroundings the place traders and merchants function confidently.
Ekpo, whereas commending the NMDPRA and JEX Markets Restricted for growing the primary on-line gasoline buying and selling and settlement platform, mentioned it marked a brand new period for clear, aggressive and investment-ready gasoline markets in Nigeria.
“The Nigeria’s huge gasoline reserves would solely ship worth if managed inside an environment friendly and well-regulated market.
“The PIA mandates the NMDPRA to guard prospects, regulate operations, pricing and guarantee clear benchmarks within the gasoline worth chain,” he mentioned.
The minister mentioned its standardised reporting and enforced settlements would strengthen market dependability and cut back counterparty dangers, whereas affordability and aggressive buying and selling would scale back obstacles and promote effectivity throughout the worth chain.
He mentioned the reforms have been essential to the success of the Decade of Gasoline initiative and would entice personal investments into gasoline processing and transportation.
The minister, whereas urging trade gamers to “associate responsibly and function professionally” to develop the sector, inspired off-takers to leverage the brand new construction for secure gasoline provide in energy era, trade and transportation.
The Authority Chief Government, NMDPRA, Mr Farouk Ahmed, in his remarks, mentioned the licence would assist wholesale gasoline buying and selling and settlement, strengthening the nation’s gasoline market operations.
In line with Ahmed, Nigeria holds 209 trillion cubic ft of confirmed gasoline reserves and an estimated 600 trillion cubic ft of potential reserves.
He mentioned the home gasoline market remained constrained by pricing opacity, excessive transaction prices and restricted flexibility regardless of its huge useful resource base.
In line with him, the Decade of Gasoline, Presidential Initiative on Compressed Pure Gasoline and Nigeria Gasoline Flare Commercialisation Programme have positioned Nigeria as a sexy gasoline funding vacation spot.
He mentioned it had applied a number of PIA provisions, together with the annual Home Gasoline Demand Requirement and Gasoline Aggregation License, together with issuance of wholesale gasoline provide licenses and revision of the Gasoline Transportation Community Code.
He mentioned it had set the home base value, gas-based industries pricing framework and mobility CNG concessionary pricing, whereas gasoline transportation tariffs and gasoline distribution licenses had been operationalised to deepen the market.
Ahmed mentioned the authority would supply clear and technology-enabled regulation to assist JEX Markets’ operations, including that it will work with the SEC and different monetary market establishments to harmonise guidelines and standardise contracts.
The ACE mentioned it will promote participation by producers, transporters, aggregators and huge patrons to construct market liquidity, whereas capability constructing, knowledge transparency and trade training would stay central to strengthening the gasoline market.
He urged the trade’s gamers to commit gasoline volumes, undertake standardised contracts and uphold market guidelines that maintain traders’ confidence.
Ahmed, whereas congratulating JEX Markets for assembly the necessities for the pioneer buying and selling license, suggested the corporate to stick strictly to the license situations and leverage world experience to function a world-class change.
The Director-Basic, SEC, Emomotimi Agama, in his remarks, mentioned that Nigeria’s financial narrative had been tied to the crude oil value cycle for years, including {that a} decisive step had been taken to vary that narrative by means of a recognised gasoline buying and selling platform.
Agama mentioned because the apex regulator of the capital markets, its mandate remained to guard traders, keep truthful, orderly, and clear markets, and mitigate systemic danger. (NAN)(www.nannews.ng)
Edited by Bashir Rabe Mani
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