Heritage Bank, Dukia Gold Eye N344trn Gold Market With LCFE Listing

May 10, 2021
Heritage Bank Dukia Gold LCFE Listing

By Dipo Olowookere

The N344 trillion gold market is about to be explored to the fullest for the benefit of the economy of Nigeria with the listing of Dukia Gold & Precious Metals Refining Co. Limited on the Lagos Commodities and Futures Exchange (LCFE).

Dukia Gold partnered with Heritage Bank as part of efforts to transform the solid minerals sector in the country and expand revenue in the non-oil sector through diversification in line with the objectives of the Economic Recovery and Growth Plan (ERGP).

Speaking at the weekend on the LCFE trading floor in Lagos, the MD/CEO of Heritage Bank Plc, Mr Ifie Sekibo, explained that the partnership was one of the many initiatives of the bank’s foundational objectives of wealth creation, preservation and transfer across generations.

According to him, the bank offers the gold commodity market three focal contact points in partnership, knowledge and perspective sharing, which ensure that every transaction was auditable to protect investors.

Mr Sekibo, who was represented by the Divisional Head, Strategy and Business Solutions, of the Bank, Olusegun Akanji, said the bank had created a buying centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.

On his part, the Chairman of Dukia Gold, Mr Tunde Fagbemi, commended Heritage Bank as the project financier and for its other pertinent supports.

He noted that Heritage Bank had so far been the banker’s bank for playing a key role in backing to promote the first solid mineral listing on exchange in West Africa.

Specifically, he explained that the instruments which would be in the form of Exchange Traded Notes (ETN), Commercial Papers (CP), and other gold-backed securities would enable the company to deepen the commodities market in Nigeria.

Mr Fagbemi, at the LCFE-Dukia Gold media parley, added that it would increase capacity, generate foreign exchange for the government to diversify external reserves and create massive employment across the metal production value chain.

“We are proud to be the first gold company whose products would be listed on the LFCE. The listing would enable us to facilitate our infrastructure development, expand capacity and create fungible products.

“This has the potential to shore up Nigeria’s foreign reserve and create an alternative window for the preservation of pension funds.

“As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies.

“Our refinery will also have multiplier effects on the development of rural areas anywhere it is located.

“There must be constant power supply, good road network and other social amenities, apart from employment opportunities for the rural dwellers,” Mr Fagbemi explained.

He also noted that with its current 25 production capacity pound and further room for expansion, Dukia Gold has the ability to meet both local and international demand through its gold refinery services to smelt melts.

The MD of LCFE, Mr Akin Akeredolu-Ale, while addressing newsmen, also commended Heritage Bank for its critical role in aiding the fundraising and the financier institution for the Dukia Gold’s diversified financial instruments, affirmed that this would enhance the company’s credibility and put Nigeria on the global map.

He noted that the LCFE was ready to support all the stakeholders in the gold sector in the areas of market creation, price discovery and dissemination of market information, among others.

Mr Gbenga Awe, the Divisional Head of Agribusiness, Natural Resources & Project Development at Heritage Bank, noted that one of the benefits of this initiative was that the local miners could now trade their gold at the bank’s designated experience centres, as a solid foundation had been created for market, price and asset discovery.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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