The Lagos Commodities and Futures Trade (LCFE) has finalised plans to listing over N21 billion value of Kian Smith FZE gold in a landmark transaction.
The transaction is geared toward deepening Nigeria’s commodities market and increasing investable asset lessons throughout the capital market.
The forthcoming itemizing will characteristic internationally licensed 1kg London Bullion Market Affiliation (LBMA) gold bars.
It highlights rising confidence in structured commodities buying and selling and marks a serious milestone in attracting institutional capital, bettering market transparency, and positioning gold as a reputable various funding for each native and worldwide buyers.
In a latest joint interview, the managing director of the Lagos Commodities and Futures Trade (LCFE), Akin Akeredolu-Ale, and the Managing director of Kian Smith FZE, Nere Emiko, introduced that the Trade had obtained approval from the Securities and Trade Fee (SEC) to listing Kian Smith’s 1kg, LBMA-certified gold bars on its buying and selling ground.
Akeredolu-Ale famous that the transaction required important effort and dedication, commending the SEC, led by its director-general, Dr. Emomotimi Agama, for the sturdy assist prolonged to the Trade.
He defined that the EKO Gold transaction, the primary itemizing on the Trade, highlighted the huge alternatives throughout the gold sector by means of commodities buying and selling.
He added that the Kian Smith itemizing is predicted to raise the Nigerian capital market and aligns with the broader imaginative and prescient of constructing a one-trillion-dollar financial system.
Akeredolu-Ale additionally counseled Kian Smith for the notable contributions to the gold sector, highlighting that Kian Smith FZE, is advancing its efforts additional by means of the LCFE itemizing.
He famous that, with Nationwide Pension Fee (PenCom) newly launched funding pointers, the timing of the 1kg LBMA gold bars itemizing is particularly well timed.
He defined that the preliminary providing is meant to gauge the Nigerian capital market’s response to structured gold buying and selling, with further tranches of gold contracts anticipated to be listed on LCFE sooner or later.
He additional highlighted the sturdy development trajectory of the gold sector over time. He famous that in 2000 and early 2024, an oz of gold traded at $1,800 and $3,200 respectively, and it at the moment trades at $4,450.
Trying forward, he said that forecast for 2026 challenge gold costs may attain $5,000 to $6,000 per ounce, underscoring the sector’s important potential.
The managing director and chief government officer of First Metropolis Monument Financial institution Restricted (FCMB), Yemisi Edun highlighted that this transaction represents a big milestone within the evolution of the Nigerian Capital Market.
She emphasised that the collaboration between Kian Smith’s provide chain experience, the LCFE’s buying and selling platform, and FCMB because the receiving financial institution establishes a mannequin for the way forward for commodities buying and selling.
Additionally, the managing director, WCM, Patrick Ajayi, the dealing member agency facilitating Kian Smith’s market entry, careworn the importance of buyers understanding the strong threat administration protocols that the instrument underwent previous to being listed on the Trade.
He additional defined that every gold bar is sealed, with its high quality and amount assured, offering buyers with confidence that each one vital safeguards and protocols have been completely applied.
