AFEX, PenOp ink deal to expand commodities markets

Business a.m

Nigeria’s leading commodities market player,AFEX has signed a Memorandum of Understanding (MoU) with the Pension Fund Operators Association of Nigeria (PenOp), with the goal of deepening the commodities market.

The partnership will allow pension funds to invest in commodities through AFEX, which will in turn help to develop the commodities market and improve returns for pension fund members.”

AFEX’s statement highlighted the challenges facing Nigeria’s commodity markets, including a lack of financial market players and resulting inefficiencies and price volatility. The collaboration with PenOP is seen as a way to expand the number of players in the market and pave the way for the potential entry of the pension industry into the commodities ecosystem.

Speaking at the MoU signing, PenOp CEO Oguche Agudah noted that the signing of the MoU was an important step in the collaboration between AFEX and PenOp, aimed at increasing the participation of PFAs (pension fund administrators) in the commodities ecosystem. Agudah stated further that the partnership would mark a significant milestone in expanding the investment opportunities available to the pension industry.