Reps urges stakeholders’ collaboration as LCFE trading kicks off

The House of Representatives has urged operators and other market stakeholders to collaborate in efforts to grow the commodities exchange and make it vibrant.

The exchange, which was granted approval in-principle for trading by the Securities and Exchange Commission (SEC) last year, is said to have the capacity to commence trading with more than its initial four asset classes – mineral resources, oil and gas, agriculture and currencies.

Addressing the board and management of Lagos Commodities and Futures Exchange (LCFE) at the maiden visit to the Exchange in Lagos on Wednesday, the Chairman, House Committee on Capital Market, Babangida Ibrahim, said a vibrant and efficient commodities trading is a major driver of economic growth and development. 

Ibrahim expressed satisfaction at the level of preparedness of the Exchange to commence full operation. He assured that the federal government would continue to support the growth and development of the commodities exchanges.
 
He said: “As lawmakers, we decided to visit the LCFE to familiarise with its workings in a bid to provide legislative support where necessary. The capital market broadens access to economic prosperity by enabling the emergence of financially-responsible citizens, accelerated wealth creation. 

“We are impressed by what is on the ground at the LCFE. The government is ready to support the growth of commodities exchanges.” 

Director-General, SEC, Dr. Lamido Yuguda, said LCFE is well-positioned to trade beyond its initial asset classes. He reiterated the Commission’s commitment to partnering all market operators to build investors’ confidence. 

LCFE’s Managing Director, Akin Akeredolu-Ale, said every effort would be made towards ensuring that the exchange operates as a pan-African commodities market.
 
“Our business model provides for the integration of commodities stakeholders to enable the commodities ecosystem. LCFE does not compete with the stakeholders of the commodities ecosystem. Rather, we encourage alignment of all stakeholders in the Ecosystem,” Akeredolu-Ale said.