capital market

FG commits to growing commodities trading ecosystem

Published

1 year ago

February 7, 2023

NewsDirect

By Philemon Adedeji

The Federal Government has expressed its commitment to continue to improve the diversification of the economy by steadily growing other sectors particularly the commodities trading ecosystem.

The assurance was given by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed during the presentation of Gold coin to her by the Lagos Futures and Commodities Exchange in Abuja, weekend.

Ahmed expressed her pleasure at the presentation as she stated that it is one of the results of the Federal Government’s commitment in continuing to improve efforts at diversifying the economy.

She said, “This is really very pleasing for me because we have been trying to improve the diversification of the Nigerian economy. People say we need to diversify the economy, but the Nigerian economy is truly diversified. Our GDP today has 6.4 per cent contribution from the oil and gas sector, so 94.6 per cent of the Nigerian economy is from other sectors. One of the sectors that we have been trying to activate the full potentials is the mining sector.

“The mining sector today is still very small, but that is on the side of government. But in the private sector and now I am glad in the states, there are very active mining activities taking place. Unfortunately, until now, we have not been getting the full value of the mining activities. Mining activities have been largely artisanal, there are a lot of participants that take out our minerals without reporting it, without government or even the miners getting full value for it.”

The Minister stated that in a bid to get the full value of mining activities in the country, the President approved and set up the Presidential Gold Mining Scheme with the Solid Minerals Development Agency leading.

“They had set up a pilot that started from Kebbi State where they supported the artisanal miners to be able to practise better mining practices and also to off take the minerals that they mine, and do some first level refining. Then the Central Bank offtakes this and sends it out of the country for proper mining.

“The essence for us is to begin to hold our reserves in minerals like gold so that our reserves are not all in US dollars. We know what happens to US dollars and what can happen to it. We are beginning to have our reserves in gold.”

She disclosed that the scheme, even though it was started by the Federal Government has seen refineries beginning to actually work in Nigeria adding that there is one in Ilesha, Segilola which was the first refinery that was licensed in Nigeria.

According to Ahmed, “This gold is now being mined in Nigeria, refined in Nigeria up to the point of producing bullions and then off taken by the CBN and other organisations like the LCFE. They are also coming forward to facilitate the trading of gold in the commodities exchange in Nigeria. That’s what we want, we wanted to be able to activate the full circle. What was missing was the off taking, now the off take is being addressed and this will help to drive demand.

“Once there is demand in the market end, the producers will be encouraged to produce more, there will be more employment, we will begin to see more banks supporting this mining sector. Before now the banks were not too interested in supporting the mining sector because of the long gestation period. The investment is actually worthwhile and we will encourage these businesses to grow and produce more. I want to congratulate the LFCE for being the first of its kind in Nigeria to achieve this.”

Ahmed congratulated the SEC for pushing the milestone, and expressed the hope that more commodities exchanges will come up as a result. She therefore charged the SEC to enable these companies to be able to operate because it is needed in the market to drive the kind of volumes that Nigeria hopes to get.

In his remarks, Director General of the Securities and Exchange Commission (SEC), Mr. Lamido Yuguda commended the Minister and the Federal Government on their determination to bequeath a vibrant commodities sector.

He stated that “LCFE is into a number of commodities and gold is just one of them. They have worked hard in this gold sector. This gold is 100 per cent Nigerian gold, mined and refined in Nigeria and I am happy that we have your support in this. Thank you very much for making this possible, we appreciate all the guidance and support you have provided so far.”

Also speaking, Managing Director of LCFE, Mr. Akin Akeredolu-Ale expressed appreciation to the SEC for all the regulatory support the Commission has provided in recent times.

Akeredolu-Ale stated that Nigeria is a commodities country, but has a large potential that is untapped so far and solicited the support of the National Assembly in passing the Investments and Securities Bill which he said will bring about massive development in the sector.

“I thank the SEC for pushing the Investments and Securities Bill because that is the legal and regulatory framework that is supposed to support the capital market and by default the commodities trading ecosystem.

“We are hoping that the bill is approved so that we are able to have a hold on the commodities space and the revenues that are slipping out of Nigeria. We need that bill passed to be able to function more effectively,” he added.

capital market

FG lists N4.214bn April savings bonds on NGX

Published

3 days ago

May 16, 2024

NewsDirect

The Federal Government has listed its April 2024 Savings Bonds worth N4.214 billion on the Nigerian Exchange Limited platform.

This was disclosed in the market bulletin signed by Godstime Iwenekhai, Head, Issuers Regulation Department of NGX.

According to the bulletin, “Trading License Holders are hereby notified that the April 2024 Issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on Nigerian Exchange Limited (NGX) on May 13, 2024.”

Details of the Bonds include FGS April 2026, 1.228 million units valued at N1.228 billion at a coupon rate of 17.046 percent, while FGS April 2027, 2.986 million units amounted to N2.986 billion at a coupon rate of 18.046 percent.

The bonds are backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of Nigeria, according to the debt office.

FGN Savings Bond is issued monthly in tenors of two and three years with quarterly payment of coupons (interest) at a rate predetermined and published by the DMO every month.

The retail savings bond product was introduced by the Debt Management Office (DMO) on behalf of the Federal Government in 2017 to democratise its activities in the bond market by making it easily accessible to Nigerians to ensure continuous development of the domestic market and bridge infrastructure deficit which has been a constraint to economic growth.

capital market

LCFE inducts 23 commodities brokers

Published

3 days ago

May 16, 2024

NewsDirect

As part of its capacity building functions, Lagos Commodities and Futures Exchange (LCFE), has onboarded and inducted another 23 Commodities Brokers, the fourth edition in the series, to increase the number of professionals to specialise in various asset classes in the Nigerian commodities ecosystem.

On the list of those inducted last week were the Managing Director, Dynamic Portfolio Limited, Mr Remi Lasaki and many Chief Executive Officers of stockbroking companies in Nigeria.

In his welcome address, LCFE’s Managing Director and Chief Executive Officer, Mr Akin Akeredolu-Ale, urged the inductees join hands with The Exchange to build a virile commodities market that shall be beneficial to all.

“LCFE is working hard to build a market that will benefit the entire Capital Market and its brokers. Each broker can select a commodity and dedicate their focus on it, thereby enhancing your company’s wealth, your individual skill set and contributing to the growth of the Nigerian Economy.

“Together, let us seize this opportunity to build a vibrant and dynamic marketplace that unlocks new possibilities for investors, enhances economic prosperity, and positions Nigeria as a leader in commodities trading.

“The Exchange is actively engaging with the Securities and Exchange Commission to obtain approval for more products like Lithium, diamond and Oil and Gas commodities. Just yesterday, we signed an MOU with a Global Certification Agent Bureau Veritas to certify lithium and other Solid Mineral commodities to be traded on LCFE. Additionally, we have made significant strides in the Cashew ecosystem, signing an MOU with the Cashew Association of Nigeria (CAN), aggregators, and a major cashew processor.

“Eko Gold also represents a pioneering investment opportunity within our commodities ecosystem, leveraging stability and transparency to diversify options, attract capital, and create value across the value chain. LCFE is fully committed to supporting its growth and providing brokers with the tools and guidance needed for effective promotion of the asset classes,” said Akeredolu-Ale.

Corroborating him, the Chairman, Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, noted LCFE was established for total transformation of commodities exchanges in Nigeria and boost the country’s Gross Domestic Product (GDP).

“The underpinning drive for establishing the exchange was the need to transform and reposition the commodities market and harness opportunities in the commodities ecosystem. This drive will enhance and crate value for all stakeholders in the ecosystem,” he said.

The newly elected President of Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, congratulated the inductees and advised them to uphold the ethical standard of the profession and operate with skills and integrity.

Akeredolu-Ale also congratulated the new board and management of Securities and Exchange Commission (SEC), under the new Director General, Dr Emomotimi Agada.

In July last year, the Pan African Exchange inducted 33 commodities brokers, including the first female office holder at Chartered Institute of Stockbrokers (CIS), Mrs Fiona Ahimie.

capital market

Tinubu asks Senate to confirm four board members of SEC

Published

3 days ago

May 16, 2024

NewsDirect

President Bola Tinubu has asked the Senate to screen and confirm four persons appointed as board members of the Securities and Exchange Commission (SEC), the apex regulator of Nigeria’s Capital Market.

The President’s request was contained in a letter read by the Senate President, Godswill Akpabio during the plenary on Wednesday.

The appointed members of the SEC are Emomotimi Agama, Frana Chukwuogor, Bola Ajomale and Samiya Hassan-Usman.

While Agama was appointed as Director-General, Mr Chukwuogor will serve as Executive Commissioner (Legal and Enforcement) of the Security and Exchange Commission. Ajomale was appointed as Executive Commissioner (Operations) while Hassan-Usman was appointed as Executive Commissioner (Corporate Services).

In April, President Tinubu approved the appointment of seven persons as members of the SEC pending their confirmations by the Senate. But, only four names were transmitted to the Senate for confirmation and Tinubu did not give reasons for not including the names of the other three professionals.

In the letter, the President explained that the appointment complied with the provisions of section (1) of the Investment and Security Act of 2007.

“Confirmation of appointment of the Director-General and Commissioners of the Securities and Exchange Commission.

“By the provision of sections 3 and 5 (1) of theInvestment and Securities Act 2007. I am pleased to present for confirmation by the Senate the under-listed four nominees as Director-General and Commissioners of Securities and Exchange Commission,” he said.

The president urged the lawmakers to expedite the screening and confirmation process.

The Senate President thereafter referred the request to the Senate Committee on Capital Markets to report back to the Senate within two weeks.