Lagos Commodities Exchange Plans Kian Smith’s N21bn Gold Bars Listing

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

The transaction is aimed at deepening Nigeria’s commodities market and expanding investable 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, the managing director of the Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, and the Managing director of Kian Smith FZE, Nere Emiko, announced 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, commending the SEC, led by its director-general, Dr. 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.

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 National Pension Commission (PenCom) newly introduced investment guidelines, the timing of the 1kg LBMA gold bars listing is especially timely.

He 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.

He further highlighted the strong growth trajectory of the gold sector over time. He 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, he stated that forecast for 2026 project gold prices could reach $5,000 to $6,000 per ounce, underscoring the sector’s significant potential.

The managing director and chief executive officer of First City Monument Bank Limited (FCMB), Yemisi Edun 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.

Also, the managing director, WCM, Patrick Ajayi, 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.