Tag: Lagos Commodities and Futures Exchange

The Lagos Commodities and Futures Exchange (LCFE) has concluded arrangements to list over N21 billion worth of Kian Smith FZE gold in a transaction aimed expanding investable asset classes within the capital market.

The listing will feature internationally certified 1kg London Bullion Market Association (LBMA) gold bars, which expectedly would deepen Nigeria’s commodities market.

Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, and Managing Director, Kian Smith FZE, Nere Emiko, confirmed that the Exchange had received approval from the Securities and Exchange Commission (SEC) to list Kian Smith’s 1kg, LBMA-certified gold bars on its trading floor.

Akeredolu-Ale said the impending listing highlights increasing confidence in structured commodities trading and marks a major milestone in attracting institutional capital.

He noted that trading on the Exchange would improve market transparency while positioning gold as a credible alternative investment for both local and international investors.

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According to him, Kian Smith listing is expected to elevate the Nigerian capital market, in alignment with the broader vision of building a $1 trillion economy.

He commended Kian Smith for the notable contributions to the gold sector, highlighting that Kian Smith FZE, is advancing its efforts further through the LCFE listing.

He noted that, with PENCOM’s newly introduced investment guidelines, the timing of the 1kg LBMA gold bars listing is especially timely.

Akeredolu-Ale noted that the transaction required significant effort and commitment, commending SEC for the strong support extended to the Exchange.

He explained that the EKO Gold transaction, the first listing on the Exchange, highlighted the vast opportunities within the gold sector through commodities trading.

Emiko explained that the initial offering is intended to gauge the Nigerian capital market’s response to structured gold trading, with additional tranches of gold contracts expected to be listed on LCFE in the future.

She further highlighted the strong growth trajectory of the gold sector over time.

She noted that in 2000 and early 2024, an ounce of gold traded at $1,800 and $3,200 respectively, and it currently trades at $4, 450.

Emiko said that forecast for 2026 project gold prices could reach $5,000-$6,000 per ounce, underscoring the sector’s significant potential.

Managing Director, First City Monument Bank Limited (FCMB), Yemisi Edun, said that the transaction represented a significant milestone in the evolution of the Nigerian capital market.

She emphasised that the collaboration between Kian Smith’s supply chain expertise, LCFE’s trading platform, and FCMB as the receiving bank establishes a model for the future of commodities trading.

Managing Director, WCM, Patrick Ajayi, the dealing member firm facilitating Kian Smith’s market entry, underlined the significance of investors understanding the robust risk management protocols that the instrument underwent prior to being listed on the Exchange.

He further explained that each gold bar is sealed, with its quality and quantity guaranteed, providing investors with confidence that all necessary safeguards and protocols have been thoroughly implemented.

The Lagos Commodities and Futures Exchange (LCFE) is concluding arrangement for the listing of a new rice-based spots contracts, in a major boost to the country’s emerging commodities ecosystem.

LCFE and other partners held preparatory meeting on the listing of Eko Rice Classic Spots Contracts valued at N23.4 billion.

Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, said the official listing of Eko Rice Classic Spots Contracts on the LCFE is expected to set a new benchmark in commodities trading and agricultural financing in Nigeria.

He noted that the listing was a major step toward building a transparent, structured, and globally competitive commodities market in Nigeria.

He said: “This pre-launch is not just a curtain-raiser. It is an invitation to co-create the future of commodities trading in Nigeria. Eko Rice Classic is a model for how agriculture and capital markets can align to generate wealth, ensure food security, and position Nigeria as a leader in structured trade.

 “Rice remains a cornerstone of Nigeria’s food security, yet a significant portion of national demand is met through imports, a trend the Eko Rice Classic seeks to reverse. By channeling investments through LCFE’s structured framework, this listing supports local production while reducing pressure on foreign reserves.

“The Eko Rice Classic Listing is more than a financial transaction. It is a bold statement that agriculture in Nigeria has matured beyond subsistence to become a viable, investable sector capable of attracting large-scale capital, driving returns, and strengthening our food systems.”

He reiterated LCFE’s commitment to providing a standardized platform for trading key asset classes, including agriculture, solid minerals, oil and gas, and currencies — with integrity and efficiency. The N23.4 billion listing, he said, is a direct reflection of LCFE’s mission to deepen liquidity and foster sustainability in the commodities ecosystem.

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He expressed appreciation to the Lagos State Government, the Securities and Exchange Commission (SEC), investors, processors, and other stakeholders for their continued support and trust.

Managing Director, Commodities Tradenet, Adeyemi Oba, explained that the Eko  Rice Classic initiative would renew confidence in Nigerian farmers, processors, and the rice value chain to meet domestic and international standards, transform agriculture through structured markets that enable fair price discovery and investment traceability and boost revenues for farmers, processors, and consumers through improved access to markets, stable supply chains, and assured quality.

Managing Director, WCM Capital Limited, Patrick Ajayi,  who represented the four listing brokerage firms, spoke on commodities brokers’ perspective.

According to him, the Eko Rice Classic offers brokers the opportunity to participate in N23.4 billion local commodity market.

“This will enhance revenue opportunities, create value for our customers and develop the local economy,” Ajayi said.

Lagos Commodities and Futures Exchange (LCFE) has inducted 42 commodities brokers, increasing the number of practitioners to over 300 through its capacity-building initiatives aimed at deepening the talent pool in the commodities ecosystem.

Among the new inductees in the 5th series, were the Registrar and Chief Executive,  Chartered Institute of Stockbrokers (CIS), Ayorinde Adeonipekun and a Monarch in Osun State, Oba Jacob Esan.

In his welcome  address, Sam Onukwue, Chairman of Induction Committee and Association of Securities Dealing Houses of Nigeria (ASHON),  challenged the inductees to develop innovative products and specialise in different asset classes. 

“I urge  you to unleash your creativity by developing products that will attract high net worth investors and create value for all stakeholders . The future growth of the exchange depends significantly on your ability to innovate, educate and advocate for the commodities market .

“As the market evolves, consider specializing in different asset classes to deepen your expertise and enhance your value proposition to clients. The Association of Securities Dealing Houses of Nigeria remains  committed to supporting the growth and development of the commodities market.”, Onukwue said.

Speaking at the induction ceremony, the Director General of Securities and Exchange Commission (SEC), Dr Emomotimi Agama, congratulated the inductees on the new certification and urged them to leverage their expertise to deepen the commodities space. Agama, who was represented by the Director of the Lagos liaison office of the Commission, Mr. John Briggs advised the inductees to study the Investment and Securities Act (ISA) 2025 to understand their roles and obligations as commodities brokers in order to avert sanction.

The LCFE’s Managing Director, Akin Akeredolu-Ale, emphasized the pivotal role commodities brokers play in Nigeria’s economic growth and development.

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“We are expanding our strategic relationship with all stakeholders in the commodities value chain to create sustainable benefits for the entire ecosystem.  Our collective efforts are geared toward putting Nigeria on the global revenue map and enhancing the flow of foreign currency into our economy. To our inductees  today, you are joining a distinguished community of professionals at a pivotal moment.

 “As commodities brokers, you are not merely market participants but essential architects of economic transformation. Your role extends beyond facilitating trades to creating awareness about the immense opportunities within our commodities ecosystem”,  said Akeredolu-Ale.

The 13th President and Chairman of Council, CIS, Oluropo Dada, represented by a Council Member, Nkoli Edoka, expressed optimism that commodities brokers would enhance the development of the commodities ecosystem.

Dada also congratulated the Board and Management of LCFE on its strategic focus to ensure that commodities sector contribute to the Gross Domestic Product (GDP) in Nigeria.

In his address, the Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue , challenged the inductees to develop innovative products and specialize in different asset classes. 

“I urge you to unleash your creativity by developing products that will attract high net worth investors and create value for all stakeholders. The future growth of the exchange depends significantly on your ability to innovate, educate and advocate for the commodities market.

“As the market evolves, consider specializing in different asset classes to deepen your expertise and enhance your value proposition to clients. The Association of Securities Dealing Houses of Nigeria remains  committed to supporting the growth and development of the commodities market.”, Onukwue said.

The event was attended by many dignitaries, including senior stockbrokers.