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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.
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