Lagos Commodities Exchange to begin gold trading
The Lagos Commodities and Futures Exchange is set to begin gold trading with the admission of Dukia Gold‘s diversified financial instruments, backed by gold as the underlying asset.
Dukia Gold said the instruments, which would be in form of exchange traded notes, commercial papers and other gold-backed securities, would enable the company to deepen the commodities market in Nigeria, increase capacity, generate foreign exchange for the government to diversify external reserves and create jobs across the metal production value chain.
The Chairman, Dukia Gold, Mr Tunde Fagbemi, while addressing journalists at Pre-Listing Media Interactive Session in Lagos on Thursday, applauded the Ministry of Mines and Steel Development and the Securities and Exchange Commission for supporting trading of gold in Nigeria.
He said, “We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange. The listing shall enable us facilitate our infrastructure development, expand capacity and create fungible products.
“This has potential to shore up Nigeria’s foreign reserve and create an alternative window for preservation of pension funds. A gold-backed security is a hedge against inflation and convenient preservation of capital.”
According to Fagbemi, the company has refinery services to smelt metals with capacity to meet local and international demand.
“As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies. Our refinery will also have multiplier effects on the development of rural areas anywhere it is located,” he added.
The Divisional Head, Strategy and Business Solutions, Heritage Bank, Mr Olusegun Akanji, said the bank had created a buying centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.