By Aduragbemi Omiyale
Governor Babajide Sanwo-Olu of Lagos State has expressed optimism that the Lagos Commodities and Futures Exchange (LCFE) would create limitless opportunities for investors as the platform will enable them to earn a steady income from electronic trading of receipts of their commodities products on a transparent and well-regulated market.
He expressed this view at the launch of the trading exchange on Thursday, noting, “Today, history is being made with the inauguration of Lagos Commodities and Futures Exchange, its dedicated electronic trading of commodities platform and launch of the proof of concept of the first tranche of special gold called Eko Gold Coins.”
Mr Sanwo-Olu explained that, “The 58 coins launched are gold-backed and the special coins can be redeemed at any time,” pointing out that, “The launch comes at a period that Nigeria is contending with hyper-inflation, rising debt and a host of other challenges.”
The Governor, while launching the 58 units of spots contracts of Eko Gold Coins, explained that the Coins represented the culture, value and inclusivity of Lagos State.
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.
Before the event 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.
The exchange introduced the Eko Gold Coins valued at 100 million pounds in tranches, commencing the much-awaited electronic trading of commodities receipt in Nigeria.
Earlier in his welcome address, the chairman of LCFE, Mr Onyenwechukwu Ezeagu, said the platform has 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, and this is a first step in fulfilling our mission to catalyse and transform the Nigerian economy and create 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.
Also commenting, the Managing Director of LCFE, Mr Akin Akeredolu-Ale, who ascribed the delay in the take-off of the platform to 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 (SEC) to commence trading of gold contracts. The gold aggregators are IAC Global Investment Limited and Tradenet Limited while GTI Capital is the transaction Adviser,” he said.
Mr Akeredolu-Ale had earlier stated that “We have put in place necessary structures to commence trading as a full-fledged commodities and futures exchange.
“Our basic function is to trade electronic receipts. We have addressed the issue of payment and settlement system, depository, registration of settlement banks and dealing member firms and certification of commodities brokers.”
