Governor of Lagos State, Babajide Sanwo-Olu, has expressed optimism that the Lagos Commodities and Futures Exchange (LCFE) would create limitless opportunities for investors to earn a steady income from electronic trading of receipts of their commodities in a transparent and well-regulated market.
LCFE has been inaugurated with the high-profile launch of Eko Gold Coins, valued at 100 million pounds in tranches, commencing the much-awaited electronic trading of commodities receipt in Nigeria.
Prior to the inauguration at the weekend, LCFE had conducted a series of test trades on its state-of-the art technology, and other basic infrastructure to drive the processes of operations in line with the global best practices.
At the inauguration of LCFE for real-time trading held in Lagos at the weekend, Sanwo-Olu, who launched 58 units of spot contracts of Eko Gold Coins, backed by gold, stated that the contracts could be redeemed any time. He also added that the Coins represented the culture, value and inclusivity of Lagos State
Prior to the inauguration, yesterday, LCFE had conducted a series of test trades on its state-of-the-art technology, and other basic infrastructure to drive the processes of operations in line with the global best practices.
Sanwo-Olu said: “Today, history is being made with the inauguration of Lagos Commodities and Futures Exchange, it is dedicated to the electronic trading of commodities platform and launch of the proof of concept of the first tranche of special gold called, Eko Gold Coins.
“The 58 coins launched are gold-backed and the special coins can be redeemed at any time. The launch comes at a period that Nigeria is contending with high inflation, rising debt and a host of other challenges.”
He commended the Board and Management of LCFE for the great vision that has strong potential to grow the Nigerian economy through the commodities ecosystem.
The Exchange’s Managing Director, Akin Akeredolu-Ale, who ascribed the delay in the take-off of the pan African Exchange to the advent of the Covid-19 pandemic, explained that LCFE operations would enhance the double-digit growth of Nigeria’s Gross Domestic Product (GDP) through de-risking of commodities products and transparent price discovery.
“We are proud to be the first Exchange in Nigeria, licensed by the Securities and Exchange Commission to commence trading of gold contracts. The gold aggregators are IAC Global Investment Limited and Tradenet Limited while GTI Capital is the transaction Adviser.”
“We have put in place necessary structures to commence trading as full-fledged commodities and futures Exchange. Our basic function is to trade electronic receipts.
“In his welcome address, LCFE’s Chairman, Chief Onyenwechukwu Ezeagu noted that LCFE had recorded many successful trading ahead of its inauguration.
He said: “The Exchange has conducted a series of system tests and successful trades through its Trade Matching Engine, and this is a first step in fulfilling our mission to catalyse and transform the Nigerian economy and creating value as well as wealth for all the stakeholders.
“We have conducted numerous training, capacity building and sensitization sessions to help our stakeholders navigate and harness the full potential of the Nigerian Commodities ecosystem geared towards transforming the Nigerian Economy at large.”
The event was attended by the Executive Commissioner, Operation, Securities and Exchange Commission (SEC), Dayo Obisesan, who represented the Commission’s Director General, Yuguda Lamido, other capital market regulators, government functionaries and operators in the commodities ecosystem.