Finance

Lagos Commodities Exchange set to list first gold instrument

The Lagos Commodities and Futures Exchange has concluded plans to admit Dukia Gold‘s diversified financial instruments, backed by gold as the underlying asset in a sector worth over N300 trillion.

Dukia Gold Chairman, Mr Tunde Fagbemi, said this at a media parley on Thursday in Lagos.

Fagbemi said the instruments which would be in the form of Exchange Traded Notes, Commercial Papers and other gold-backed securities would enable the company to deepen the commodities market in Nigeria.

He added that it would increase capacity, generate foreign exchange for the government to diversify external reserves, and create massive employment across the metal production value chain.

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He noted that the crude oil and the cocoa market would have had a better outing if there were strategies put in place to regulate it right from inception.

Fagbemi, who applauded the Ministry of Mines and Steel Development and the Securities and Exchange Commission for supporting the trading of gold in Nigeria, noted it remained one of the ways to diversify Nigeria’s sources of foreign exchange.

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“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 the preservation of pension funds,” he said.

He explained that gold-backed security was a hedge against inflation and convenient preservation of capital.

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“We have refinery services to smelt metals with the 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.

“There must be constant power supply, good road network, and other social amenities, apart from employment opportunities for the rural dwellers,” he said.

Punch

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