Lagos Commodities and Futures Exchange (LCFE) has presented “Eko Gold Coin” to the Securities and Exchange Commission (SEC), Nigeria’s supreme capital market regulator, with the aim of building confidence, structuring the gold market and deepen the commodity ecosystem.
The Eko Gold Coin was created in response to the need for an alternative asset class that investors could invest in outside of stocks and fixed income instruments. Each of the pieces is 24 carats, weighing 50 grams with a purity of 99.99%.
At the event, where paddy rice spots and futures were also showcased, Patrick Ezeagu, President of LCFE, said that the commodity ecosystem is being reformed and transformed with the development innovative products and fungible instruments introduced to the market.
He said one such innovative product developed by the LCFE is the “Eko Gold Coin” which he praised 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 commodity exchange in Nigeria, “The Eko Gold Coin”.
“It is our greatest honor and joy to present the first installment of these exclusive gold coins that are available for purchase at LCFE for you and your esteemed commission-based team,” Ezeagu said during the meeting which also included officials from the SEC, LCFE and Sterling Bank. , Central Securities and Clearing Services (CSCS) and traders, among other stakeholders present.
SEC Chief Executive Lamido Yuguda urged the country’s commodity exchanges to put investor protection at the center of their operations in a bid to improve confidence and attract more investment.
“Gold itself has great value. Once you have invested your money and bought it, you have value. It is indisputable, but where you have to be careful, it is with the associated investment product, the derivatives.
The SEC CEO added that when people invest, they postpone their current consumption for future consumption and must be paid back as a price for this postponement of present consumption.