LCFE set to list N21bn Kian Smith gold bars

The Lagos Commodities and Futures Exchange (LCFE) has finalised plans to list over N21 billion worth of Kian Smith FZE gold.

This is a landmark transaction aimed at deepening Nigeria’s commodities market and expanding investible asset classes within the capital market.

The forthcoming listing will feature internationally certified 1kg London Bullion Market Association (LBMA) gold bars.

It highlights increasing confidence in structured commodities trading and marks a major milestone in attracting institutional capital, improving market transparency, and positioning gold as a credible alternative investment for both local and international investors.

In a recent joint interview, Akin Akeredolu-Ale, Managing Director of the Lagos Commodities and Futures Exchange (LCFE) and Nere Emiko, Managing Director of Kian Smith FZE said that the Exchange had received approval from the Securities and Exchange Commission (SEC) to list Kian Smith’s 1kg, LBMA-certified gold bars on its trading floor.

Akeredolu-Ale noted that the transaction required significant effort and commitment, and he commended the SEC, led by its Director General, Emomotimi Agama, for the strong support extended to the Exchange. He explained that the EKO Gold transaction, the first listing on the Exchange, highlighted the vast opportunities within the gold sector through commodities trading.

He added that the Kian Smith listing is expected to elevate the Nigerian capital market and aligns with the broader vision of building a one-trillion-dollar economy.

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Akeredolu-Ale also commended Kian Smith for the notable contributions to the gold sector, highlighting that Kian Smith FZE, is advancing its efforts further through the LCFE listing. He noted that, with PENCOM’s newly introduced investment guidelines, the timing of the 1kg LBMA gold bars listing is especially timely.

Emiko explained that the initial offering is intended to gauge the Nigerian capital market’s response to structured gold trading, with additional tranches of gold contracts expected to be listed on LCFE in the future.

She further highlighted the strong growth trajectory of the gold sector over time. She noted that in 2000 and early 2024, an ounce of gold traded at $1,800 and $3,200 respectively, and it currently trades at $4, 450. Looking ahead, she stated that forecast for 2026 project gold prices could reach $5,000-$6,000 per ounce, underscoring the sector’s significant potential.

Yemisi Edun, Managing Director and Chief Executive Officer of First City Monument Bank Limited (FCMB), highlighted that this transaction represents a significant milestone in the evolution of the Nigerian Capital Market.

She emphasised that the collaboration between Kian Smith’s supply chain expertise, the LCFE’s trading platform, and FCMB as the receiving bank establishes a model for the future of commodities trading.

Patrick Ajayi, Managing Director, WCM, the dealing member firm facilitating Kian Smith’s market entry, stressed the significance of investors understanding the robust risk management protocols that the instrument underwent prior to being listed on the Exchange.

He further explained that each gold bar is sealed, with its quality and quantity guaranteed, providing investors with confidence that all necessary safeguards and protocols have been thoroughly implemented.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.