The Lagos Commodities and Futures Exchange (LCFE) has finalized plans to commence gold trading after admitting Dukia Gold’s diversified instruments which will be backed by gold as the major trading asset.
Poised to deepen the commodities market in the country, enhance capacity, bring in forex for the economy and consequently increase external reserves and create jobs within the metal production industry, Dukia Gold announced that the instruments would be in the form of exchange traded notes, commercial papers and other gold-backed securities.
Applauding both the Ministry of Mines and Steel Development and the Securities and Exchange Commission (SEC) for creating environments to aid gold trading in the country, Mr. Tunde Fagbemi, the Chairman, Dukia Gold, while addressing journalists at the Pre-Listing Media Interactive Session in Lagos, yesterday, 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.”
He continued, “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.”
Reacting to this, Nairametrics said, “It can be recalled that the Federal Government, in June 2020, commissioned the operations of Dukia Gold and Precious Metals Project (DGPMP). The project is expected to enable Nigeria to mine its gold reserves properly, trade responsibly and refine locally.
“The Vice President, Prof. Yemi Osinbajo, while performing the virtual commissioning of the project, said Nigeria has potential reserves of 200 million ounces of gold reserves.”
The online media channel went on to say, “Osinbajo said that he believed that the Dukia gold project would encourage the emergence of smaller-scale mining companies which, for the first time, would have a transparent and welcoming market for their mined gold and precious metals.”
Azuka Edokobi is a Writer and Entrepreneur