Lagos Commodities and Futures Exchange (LCFE) has presented “the Eko Gold Coin” to the Securities and Exchange Commission (SEC), the apex regulatory body of the Nigerian capital market, in a bid to drive confidence, structure the gold market and deepen the commodity ecosystem.
The Eko Gold Coin was created out of the need to have an alternative asset class that investors can invest in apart from equities and fixed income instruments. Each of the coins is 24-carat, weighing 50 grams with 99.99 per cent purity.
At the event, where Paddy Rice Spots and Forwards Contracts were also presented, Patrick Ezeagu, Chairman of LCFE, said the commodities ecosystem was being reformed and transformed with the development of innovative products and fungible instruments that are being introduced into the market.
He said one of such innovative products developed by the LCFE is “the Eko Gold Coin” which he commended the SEC for helping to drive.
He recalled that the LCFE was commissioned by the governor of Lagos State, Babajide Sanwo-Olu, in July 2022 with the momentous launch and unveiling of the first physical gold asset tradable on a commodities exchange in Nigeria, “The Eko Gold Coin.”
“It is greatest honour and elation to present the first tranche of these exclusive gold coins which is available for purchase at LCFE to you and your esteemed team at the commission,” Ezeagu told the meeting which also had officials of SEC, LCFE, Sterling Bank, Central Securities and Clearing Services (CSCS) and the merchants, among other stakeholders present.
The Director General of the SEC, Lamido Yuguda, urged commodities exchanges in the country to have investor protection at the centre of their operations in a bid to improve confidence and attract more investments.
“The gold itself has great value. Once you put out your money and buy it, you have value. That is incontrovertible but where we need to be careful is the associated investment product, the derivatives.”
The SEC DG added that when people invest, they are postponing current consumption for future consumption, and need to be paid some returns as a price for that postponement of current consumption.