The Lagos Commodities and Futures Exchange (LCFE) has registered its commitment towards creating a framework for Safe Keeping Receipt (SKR) and vault integration for gold trading in 2022.
Akin Akeredolu-Ale, managing director, LCFE, who disclosed this during the recently conducted LCFE end of the year press parley held in Lagos, said the exchange would engage market shareholders in its bid to develop the solid minerals space.
“We want to create a framework for SKR and vault integration and in doing this, we will work on African and global partnership on storage and global trading of Nigerian gold,” he said.
Akeredolu-Ale also noted that the LCFE is working towards listing the first gold on the commodities exchange by January 2022, adding that the first quarter of 2022 will see the weekly listing of gold bars on the exchange, as well as the incorporation of Nigerian youths and adults into buying and selling gold on the exchange.
He further revealed that the LCFE is putting together the framework for commodity notes, listings and ETFs; and noted that it is targeting cold chain guidelines, logistics investments and strategic partnerships especially with the Securities and Exchange Commission (SEC) for the agricultural space.
Commenting on the performance of Nigeria’s commodities sector, he said the country, despite being one of the biggest markets in Africa, has a worrisome trade imbalance challenge, being that the commodities ecosystem is not given the adequate priority.
He stressed that the country is yet to harness the commodities market effectively but noted that the LCFE is looking at having a structured approach in the ecosystem to see ways at which fungible instruments can finance both the agricultural and solid minerals commodities ecosystem so that the economy can thrive.
It is high time the federal government looked at ways at which it can partner with the exchange to cross commodities before it is exported outside the country, Akeredolu-Ale said.
On the timeline for the commissioning of the exchange, the LCFE boss said it is working on that, as well as the legal framework of how the commodities exchange works, with the National Assembly.
