Library / B 143 Federal Republic of Nigeria Official Gazette No. 52
B 143 Federal Republic of Nigeria Official Gazette No. 52

Page 27 of 31
B 169
“Million British Thermal Units or MMBTU” means one Million British
Thermal Units and shall be the unit for energy content of natural gas based
on gross calorific value as defined in ISO 6976 ;
“net worth” means the aggregate value of the paid-up share capital and
all reserves created out of the profits, securities premium account and credit
balance of profit and loss account, after deducting the aggregate value of
the accumulated losses, deferred expenditure, miscellaneous expenditure
not written off and debit balance of profit and loss account, as per the
audited balance sheet, but does not include reserves created out of
revaluation of assets, write-back of depreciation and reduced by the
aggregate value of loans and advances to the associates or as may be
calculated in the manner specified by the Authority ;
“Network Code” means the rules published by the Authority, under the
Act, in respect of the operation of gas transportation networks in Nigeria ;
“netting” means the determination of net payment by gas exchange or
clearing house, as the case may be, of each member of gas exchange or
clearing house by setting off or adjustment of the inter-se obligations or
claims arising out of buying and selling of gas ;
“open position” means a buy or sell position, when a transaction has
been executed but the delivery or financial settlement has not been completed
and where a concerned person may remain exposed to price or credit or
operational risk ;
“operational risk” means any risk emanating in a contract due to
systems, processes, technology error, breakdown, or non-scheduling of gas
due to technical reasons ;
“pipelines system operators” shall have the meaning as defined in the
Network Code ;
“proprietary member” means a member who can transact or clear on
its own account or on account of its affiliates or associates, but not on
account of anyone else ;
“safe liquid investment” means investments in liquid assets comprising
of cash in hand, cash equivalents (that is short term, highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value) and demand and term
deposits with scheduled banks ;
“Securities and Exchange Commission of Nigeria” means the agency
of the Federal Government of Nigeria responsible for the regulation of
exchanges in Nigeria ;
“settlement” means the process of discharging the obligations of members
resulting from conclusion of a transaction at an exchange ;
“Settlement Guarantee Fund”means a Fund maintained by the gas
exchange or clearing house to be used for settlement of defaults of its