LCFE, HB to boost N445tn commodities market

Lagos Commodities and Future Exchange, Heritage Bank Plc, capital market players and other stakeholders have expressed their commitment to unlocked the $1tn (N445tn) commodities ecosystem as avenue to diversify the economy from a crude oil dependent economy to other critical economic sectors.

Lagos Commodities and Future Exchange, Heritage Bank Plc, capital market players and other stakeholders have expressed their commitment to unlocked $1tn which is equivalent to N445tn commodities ecosystem as avenue to diversify the economy from a crude oil dependent economy to other critical economic sectors.

A statement said they spoke at the launch of Lagos Commodities & Futures Exchange, with the theme, ‘New order, driving Nigeria’s economy through the commodities ecosystem’,  in Lagos.

They stakeholders said it was important to transform the Nigerian economy to create value, wealth, restore growth and build global competitive economy.

While giving his goodwill message, the Managing Director and Chief Executive Officer, Heritage Bank, Ifie Sekibo, said, “As the lead settlement bank in partnership with key stakeholders that are critical to the success of this project, it considered the launch of LCFE as huge potential to unlock the opportunities and wealth of the four asset classes- agriculture, solid minerals, oil and gas and currencies.

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He said, “I believe that this is the beginning of how we are going to possibly create values in areas that hitherto we have taken for granted.

“First thing it will bring about is sustainable commodity trading ecosystem, being a catalyst for capital formation, unlocking the long-time financing for the solid mineral and mining space. A frontline push to diversify the economy of this country from oil.”

Sekibo explained, that the collaboration between Heritage Bank and LCFE was designed to align the market to transparent price discovery, standardised platform for trading of commodities across defined asset classes and straight through processing to settlement.

He said the promotion of investment in commodities ecosystem by Heritage Bank in partnership with LCFE in its various assets traded agriculture, solid minerals, oil and gas and currencies would increase liquidity, support from local commodity exportation to boost the race for the $200bn in FX repatriation and reduce the pressure on exchange rate.

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