Friday, 29 July 2022 06:38

Lagos Commodities and Futures Exchange begins operation

Rate this item
(0 votes)

Lagos Commodities and Futures Exchange (LCFE) Thursday officially went live and began trading on commodities targeting to leverage the potential of the commodity ecosystem worth about $1 trillion.

The Commodities and Futures Exchange will trade on four asset classes such as crude oil, solid minerals, currency and agriculture.

Prior to its incorporation in 2015 and receipt of license to trade the four asset classes of Commodities from the Securities and Exchange Commission in 2019, the Nigerian Commodities Ecosystem was a greenfield. Stakeholders have been buying and selling commodities for many decades without structure, without price discovery and without transparency.

What the LCFE is saying

Speaking at the commissioning of the Exchange by the Executive Governor of Lagos State, Babajide Sanwo-Olu, Akin Akeredolu-Ale, Managing Director/CEO, Lagos Commodities and Futures Exchange said: “As we are all aware, the Capital size of the Nigerian Commodities Ecosystem is so large and like I have said in the past, it can be considered as a $1trillion economy cutting across Agriculture, Oil and Gas, Solid Minerals and Currency. With a capitalisation this large, it was important to lay the right foundation as the means determined the end for us and we could not afford not to get it right.”

  • The CEO said the Exchange and its competent team spent the past three (3) years identifying and aligning relevant building blocks for an effective, structured, and transparent commodities ecosystem. He noted that one of the asset classes in which LCFE has made tremendous giant strides in, is the Solid Minerals asset class.
  • “We noticed there was an urgent need for structure, regulation, funding and data collation in this sector and this is where Commodities Exchanges play strategic roles in introducing structure to this ecosystem.
  • “A quick glance at the Solid Mineral Mapping of Nigeria, shows a very robust distribution of solid minerals. Nigeria is heavily blessed with over 40 different mineral types spread across more than 450 deposits across the country, of which seven, including Gold, have been identified by the Ministry of Mines and Steel Development, as the most strategic towards rehabilitation of the Solid Minerals sector. We are proud to be the first Exchange in Nigeria licensed by the Securities and Exchange Commission to commence trading of gold contracts backed by physical Gold,” he said.
  • Also speaking, Onyenwechukwu Ezeagu, Chairman, Board of Directors Lagos Commodities & Futures Exchange said, “In 2015, LCFE was incorporated under the initiative of Association of Securities Dealing Houses of Nigeria (ASHON). Our vision was to transform the Nigerian commodities market and redefine practice standards which would catalyse economic growth in Nigeria.
  • “In 2019, we were granted full operating license by the Securities & Exchange Commission (SEC) to trade 4 asset classes: Agriculture, Solid Minerals, Oil and Gas and Currencies. We sincerely appreciate the Securities & Exchange Commission for your encouragement and support to accomplish this feat.”
  • He noted that “The journey to accomplish this has been long but fulfilling. Since 2015, there has been a lot of emphasis by the present Federal Administration on diversifying the economy from a crude oil-dependent economy to other critical economic sectors such as Agriculture and Solid Minerals. We keyed into the vision and identified the need for a platform to facilitate transparent and orderly trade of these commodities. It was out of this that the Lagos Commodities and Futures Exchange was founded with the intention to create a platform that encourages transparent price discovery, mitigate price risks and bridge the gap between the Financial and Commodities sectors of the economy.”

 

Nairametrics

April 24, 2024

'I've cleaned more toilets than all of you combined': Nvidia founder Jensen Huang says he…

Thanks to investors' insatiable appetite for artificial intelligence, Nvidia (NVDA) — a key player in…
April 12, 2024

At cost totaling the 2024 budgets of the 36 states plus FCT, Lagos-Calabar project is…

Presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, Atiku Abubakar, has…
April 21, 2024

The best of humans in the machine age - Alvin Govender

In a world increasingly powered by machines and artificial intelligence, our human qualities have never…
April 13, 2024

A new camera can undress people almost in real time—to send a message about AI

Nuca, a new deepfake camera, is an art project that shows how artificial intelligence can…
April 24, 2024

Why we’re after Yahaya Bello - EFCC chair

During an interactive session with media executives in Abuja, Ola Olukoyede, the chairman of the…
April 24, 2024

Here’s the latest as Israel-Hamas war enters Day 201

Israel steps up strikes across Gaza, orders new evacuations in north Israeli strikes intensified across…
April 15, 2024

Winning funding proposals written by generative AI: Should that matter to you?

Generative AI is getting better every day. We now have ChatGPT4, Claude 3, Gemini, Perplexity,…
April 10, 2024

Nigeria’s Super Falcons qualify for 2024 Olympics at South Africa’s expense

Super Falcons of Nigeria have qualified for the women’s football event of the 2024 Olympics…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.