Kian Smith FZE is set to list and trade over N21 billion worth of 1kg LBMA Gold Bars on the floor of Lagos Commodities and Futures Exchange (LCFE).
Speaking during a recent joint interview involving Kian Smith FZE and Lagos Commodities and Future Exchange, Akin Akeredolu-Ale, managing director/CEO of the Exchange, announced that the LCFE, had received approval from the Securities and Exchange Commission (SEC) to list Kian Smith 1kg LBMA Gold bars on its floor.
The MD highlighted that this was a transaction that had taken a lot of work and commitment. He commended the Commission led by Emomotimi Agama, the director-general, for the support the Commodities Exchange had received. He explained that the EKO Gold transaction which was the first listing on the Exchange, showed the capital market the opportunities available in the gold sector through the Commodities Exchange. He further noted that this Kian Smith transaction would take the Nigerian Capital Market to another level in line with the $1 trillion economy target or the President Bola Tinubu-led federal government
The Exchange MD also commended Kian Smith for the work it has done in the gold sector, and the step the company has taken towards listing on LCFE. He noted that in line with the new investment guidelines provided by the Pension Commission (PENCOM), the listing of the 1KG LBMA gold bars has come at the right time.
He also explained that the gold spots contracts have assembled a host of SEC licensed capital market professionals from dealing member firms, receiving banks, depository, collateral managers and so on, to ensure that the gold contracts are in line with all the relevant legal framework and risk management protocol.
Nere Emiko, the MD/CEO, Kian Smith, explained that Kian Smith was bringing 1kg LBMA Gold bars certified by the London Bullion Markets Association to list and trade on LCFE.
The initial offer to be listed would be 100kg Gold bars which come to well over N21 billion. Nere stated that this initial offer was to test the responsiveness of the Nigerian Capital Market to structured gold trading and more tranches of gold contracts will be listed on the Commodities Exchange
She noted that investors can invest in as little as 100g out of the 1kg Gold bars and that all the risk management protocols have been taken into consideration. The Gold bars are all LBMA certified, each bar is insured and they are stored in a secure vault managed by vault/collateral managers.
She noted that the gold sector has shown an upward trajectory in valuation over time. She noted that in 2000 and early 2024 an ounce of gold was trading at, $1,800 and $3,200 respectively and today, its trading at $4,450. Nere also stated that the forecast for gold for 2026 is set to still get to as high as $5,000/$6,000 per ounce showing great promise. She explained that this is the right time for investors to participate and invest in the gold space.
Yemisi Edun, managing director/ CEO, First City Monument Bank Limited (FCMB), noted that this transaction marks a new level of maturity for the Nigerian Capital Market. The synergy between Kian Smith’s supply chain excellence, the LCFE’s trading floor, and First City Monument Bank Limited as the receiving bank, creates a blueprint for the future of commodities trading. FCMB remains committed to being the gateway for investors seeking to diversify into structured high-growth solid mineral contracts.
Patrick Ajayi, managing director of WCM Capital, the listing dealing member firm, described gold as a store of value that has existed for several years. He explained the need to have gold in investment portfolios for stability. He also noted that the Gold Spot contracts were for all investors both institutional and individual investors.
He explained that as the dealing member firm, in bringing Kian Smith to the market, it’s important that investors understand the risk management protocols that the instrument has gone through before listing on the Exchange.
Ajayi explained that each Gold bar was sealed and the quality and quantity is assured; that is the added comfort of listing the gold on an Exchange because investors can rely on the fact that the protocols have all been taken into consideration.
