Nigeria launches first £100m gold spot contract series

By Chinwendu Obienyi

History was made yesterday as the Federal Government launched its first gold spot contract series valued at about £100 million, comprising a gold-backed financial instrument to be listed and traded on the Lagos Commodities and Futures Exchange (LCFE).

 This is even as the Federal Government stated that the development will make spot contracts to be redeemed at any time for specially made gold coins at designated vaults.

 Speaking during the official the commissioning of the LCFE in Lagos, Governor, Babajide Sanwo-Olu, of Lagos State said that as home to the Nigerian Exchange (NGX) Group Plc as well as the FMDQ Securities Exchange, it is proud to be home to Nigeria’s first commodities and futures exchange. He added that this is in line with the state’s policy geared towards improving the enabling environment for businesses and investments to thrive, attracting cutting edge ideas and innovations and unending inflow of financial transactions that will enable institutions to do well. Describing the LCFE as a dedicated and electronic trading of Nigerian agricultural products, solid minerals, oil and gas, Sanwo-Olu, noted that the first tranche of the special gold coins known as “Eko Gold Coin” for which spot contracts can be redeemed is designed as a proof of concept and will comprise of 58 units of the coin valued at over N100 million.

 He said, “After this proof of concept launch, I am told that the futures listing of the EKO Gold coin will take place in tranches of £10 million each. This is no doubt the beginning of a new and exciting chapter in the investment community in Lagos, Nigeria and around the world. We are seeing a maturing of the investment marketplace and as a welcome expansion of opportunities available for those who want to invest their money”.

 Earlier in his opening remark, the Chairman, Board of Directors, LCFE, Chief Patrick Ezeagu, stated that the launch of the LCFE was  the first step to fulfilling the Exchange’s mission to catalyse, transform the Nigerian economy to create value and wealth for all stakeholders.