Lagos Commodities Futures Exchange Mulls Crude Oil Trading

By Adedapo Adesanya

The Lagos Commodities Futures Exchange (LCFE) has moved for the trading of Nigeria’s crude oil in its exchange, in a bid to help boost Nigeria’s revenue generation and determine fair pricing.

It also urged the federal government to utilize the commodities exchange ecosystem to boost food security, create job opportunities and enhance Nigeria’s capacity to earn foreign exchange.

Speaking recently in Lagos, Mr Akin Akeredolu-Ale, the chief executive of the exchange, said that the LCFE has the facilities to trade commodities such as crude oil among other commodities, noting that it has spoken to the Nigerian National Petroleum Company (NNPC) Limited and the Securities Exchange Commission (SEC) to get the necessary authorisation.

“We have approached the NNPC and the Securities and Exchange Commission, SEC to discuss with them on how we can trade crude oil in Nigeria instead of allowing foreign players to determine the price we sell our crude oil in the international market.

“We want the NNPC, SEC and other stakeholders in the commodities space to partner with us so that we can develop our market and generate more foreign exchange, FX for the country.

“LCFE kicked off the year 2024 with a series of agreements geared towards the development of the commodities ecosystem. Some of these agreements include the National Coconut Development and Propagative Initiative (NATCODEV) for the growth of the coconut value chain,” he stated.

The exchange also signed an agreement with the Niger State government, represented by Niger Foods, an agency of the state, and the Lagos State Rice Mill for financing the supply of rice paddy to the mill.

Mr Akeredolu-Ale noted that the Nigerian economy is experiencing a food crisis with a fast-rising cost of food which coupled with the high cost of transportation, insecurity, poor infrastructure, and foreign exchange instability are making it difficult for Nigerians to feed.

According to him, the LFCE can play a crucial role with its ability to make food commodities priced at the correct value.