The Lagos Commodities and Futures Exchange (LCFE) has concluded plans to list more than ₦21 billion worth of gold bars produced by Kian Smith FZE, a move aimed at expanding investable asset classes and deepening Nigeria’s commodities and capital markets.

The listing will feature 1kg London Bullion Market Association (LBMA)-certified gold bars, internationally recognised for quality and integrity. Market analysts say the development is expected to strengthen structured commodities trading and position gold as a credible alternative investment for both local and foreign investors.

Managing Director of LCFE, Akin Akeredolu-Ale, and Managing Director of Kian Smith FZE, Nere Emiko, confirmed that the Exchange has received approval from the Securities and Exchange Commission (SEC) to list the gold bars on its trading platform.

Akeredolu-Ale described the listing as a major milestone that reflects growing confidence in Nigeria’s commodities market. He said trading on the LCFE would enhance transparency, improve price discovery, and attract institutional capital, while supporting the broader objective of building a $1 trillion Nigerian economy.

He also commended Kian Smith FZE for its contributions to the development of Nigeria’s gold sector, noting that the timing of the listing aligns with PENCOM’s newly introduced investment guidelines, which open up fresh opportunities for pension fund participation in alternative assets.

According to him, the transaction required extensive coordination and regulatory engagement, praising the SEC for its strong support throughout the approval process. He added that the EKO Gold transaction, the Exchange’s first gold listing, highlights the vast potential of commodities trading in unlocking value across the mining sector.

Speaking on the initiative, Nere Emiko explained that the initial offering is designed to test market appetite for structured gold instruments, with plans to list additional tranches on the LCFE in the future. She noted that the global gold market has demonstrated strong long-term growth.

Emiko pointed out that gold traded at about $1,800 per ounce in 2000, rose to $3,200 in early 2024, and currently trades around $4,450 per ounce. She added that forecasts for 2026 project prices could reach between $5,000 and $6,000 per ounce, underscoring gold’s attractiveness as a store of value.

Managing Director of First City Monument Bank (FCMB), Yemisi Edun, described the transaction as a significant advancement for Nigeria’s capital market. She said the collaboration between Kian Smith’s supply chain, LCFE’s trading platform, and FCMB as the receiving bank provides a scalable model for future commodities listings.

Also speaking, Patrick Ajayi, Managing Director of WCM, the dealing member firm facilitating the listing, stressed the importance of robust risk management. He explained that each gold bar is sealed, certified, and fully guaranteed in both quality and quantity, assuring investors that all regulatory and safety standards have been met.