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House Committee On Capital Markets Lauds Management of LCFE As Trading Begins Soon

Commodities	1180 VIEWS
Commodities
1180 VIEWS

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Thursday, December 10, 2020 / 1:10 PM / LCFE / Header Image Credit: Vanguard

The Federal Government has expressed confidence in the ability of the Lagos Commodities and Futures Exchange (LCFE) to commence full operation any moment from now.

The Exchange which was granted approval in principle for trading by the Securities and Exchange Commission (SEC) was said to commence trading with more than its initial four asset classes namely: Mineral Resources, Oil and Gas, Agriculture, and Currencies.

Addressing the Board and Management of LCFE at the maiden visit to The Exchange yesterday, the Chairman, House Committee on Capital Market, Honourable Babangida Ibrahim expressed satisfaction at the level of preparedness of the Exchange to commence full operation.

Ibrahim, who led a high-powered team of House of Representatives' Capital Market Committee explained that the federal government shall continue to support the growth and development of Commodities Exchanges in Nigeria and assured the LCFE's Management of continuous collaboration.

According to him, a commodities exchange is a strong platform for economic growth and development in the wake of the government's efforts to seek alternative means to grow the economy.

"As lawmakers, we decided to visit the Lagos Commodities and Futures Exchange (LCFE) to familiarise ourselves with its workings in a bid to providing legislative support where necessary. The capital market broadens access to economic prosperity by enabling the emergence of financially responsible citizens, accelerated wealth creation, and distribution in any environment. We are impressed by what is on the ground at the LCFE. The government is ready to support the growth of Commodities Exchanges in Nigeria.", said Ibrahim.

Supporting Ibrahim, the Director-General, Securities and Exchange Commission (SEC), Dr. Lamido Yuguda noted that LCFE was well-positioned to trade beyond its initial four asset classes. He reiterated the Commission's commitment towards ensuring partnership with all market operators to build investor confidence.

Yuguda congratulated the Board and Management of LCFE for putting The Exchange on the path of an institution established to create diversification in the collective efforts to develop the nation's economy.

"SEC is willing to work with LCFE to develop all the rules needed to realize the potentials of the country in the area of commodities trading. The responsibility of the SEC is to ensure good market development, fair trading, and investor protection. We are satisfied with the level of preparedness of LCFE.", Yuguda said.

Earlier in his welcome address, the Chairman, LCFE, Chief Onyenwechukwu Ezeagu explained that LCFE was an initiative of the Association of Securities Dealing Houses of Nigeria (ASHON) - the trade group of all registered dealing member Exchanges.

"ASHON, in recognition of the need to fully realize the potential of the Federal Government's drive towards the development of the Agriculture and Solid minerals sector and to tap into the opportunities thereof, took the initiative to establish a Commodities and Futures Exchange, which would be positioned to support the FGN's strides to create wealth for the stakeholders", said Ezeagu.

The LCFE's Managing Director and Chief Executive Officer, Mr. Akin Akeredolu-Ale made a presentation on the operations of The Exchange and noted that every effort was geared towards ensuring that The Exchange operates as a Pan African Commodities Market.

Akeredolu-Ale underscored the importance of collaboration and urged all participants in the ecosystem to work together.

"Our Business Model provides for the integration of commodities stakeholders. LCFE does not compete with the stakeholders of the commodities ecosystem, rather, we encourage alignment of all stakeholders in the ecosystem.", Akeredolu-Ale said.

The event attracted the Chairman of Dukia Gold and Precious Metals Refining Limited, Chief Tunde Fagbemi, and that of Japul Gold & Ventures PLC, Mr. Jegede Paul who spoke on their companies readiness for listing on the LCFE. The forum featured mock trading to the admiration attendants.