Sanwo-Olu launches LCFE to drive electronic commodity trading
By Felicia Nwosu
The Lagos State governor, Mr. Babajide Sanwo-Olu, has revolutionized the Nigerian commodities ecosystem through the launch of Lagos Commodities and Futures Exchange (LCFE). The launch witnessed a first tranche of special gold called Eko Gold Coins, special coins that can be redeemed at any time.
As the first Exchange in Nigeria, LCFE is licensed by the Securities and Exchange Commission to commence trading of gold contracts.
During the launch, the governor confidently assured that it will 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.
The high-profile launch of Eko Gold Coins was valued at 100 million pounds in tranches, commencing the much-awaited electronic trading of commodities receipt in Nigeria.
To ascertain that it is in tune with acceptable global standards of practice, LCFE carried out a series of acid tests on its state-of-the-art technology and other basic infrastructure to drive the processes of operations.
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 represent the culture, value and inclusivity of Lagos State, mentioning that the introduction of LCFE will speak as a remarkable legacy for the state in future.
“Today, history is being made with the inauguration of Lagos Commodities and Futures Exchange (LCFE). 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.”
The award winning governor also lauded the Board and Management of LCFE for birthing such a priceless vision and an enduring legacy to grow the Nigerian economy and commodities ecosystems.
Akin Akeredolu-Ale, the Exchange’s Managing Director, revealed that the launch of the pan African Exchange was a bit delayed as a result of the outbreak of COVID-19 pandemic, while adding that its 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 exchanges. Our basic function is to trade electronic receipts,” he said.
Chief Onyenwechukwu Ezeagu, LCFE’s Chairman while delivering his welcome address, noted that the electronic trading platform had recorded many successful trading ahead of its inauguration.
“The Exchange has conducted a series of system tests and successful trades through its Trade Matching Engine. 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,” he said.
The event was also graced by the presence of 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.
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