Heritage Bank, in collaboration with Dukia Gold and Precious Metals Refining Co. Limited, has unveiled plans to unlock the over N344 trillion market worth of gold investible instruments in the solid minerals sector with the concluded plans of being listed on the Lagos Commodities and Futures Exchange (LCFE).
The investment move, which was disclosed weekend at the LCFE-Dukia Gold media parley held at the LCFE Trading Floor in Lagos, is expected to boost the nation’s revenue in the non-oil sector through diversification, by stimulating growth in solid minerals in line with the objectives of Economic Recovery and Growth Plan (ERGP).
It will also put Nigeria on the global map with regards to standardized gold tracing, sourcing procurement and trading it.
Speaking at the parley, the Chairman of Dukia Gold, Tunde Fagbemi, who commended Heritage Bank as the project financier and for its other pertinent supports, said that the bank had been playing key roles to promote the first solid mineral listing on Exchange in West Africa.
Specifically, he explained that the instruments which would be in the form of Exchange Traded Notes (ETN), Commercial Papers (CP), and other gold-backed securities would enable the company to deepen the commodities market in Nigeria.
Fagbemi expressed optimism that the investments would increase capacity, generate foreign exchange for the government to diversify external reserves and create massive employment across the metal production value chain.
He expatiated: “We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange. The listing shall enable us facilitate our infrastructure development, expand capacity and create fungible products.
“This has potential to shore up Nigeria’s foreign reserve and create an alternative window for preservation of pension funds.
“As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies. Our refinery will also have multiplier effects on the development of rural areas anywhere it is located.
“There must be constant power supply, good road network and other social amenities, apart from employment opportunities for the rural dwellers,” Fagbemi added.
He also noted that with its current 25 production capacity pound and further room for expansion, Dukia Gold has the ability to meet both local and international demand through its gold refinery services to smelt melts.
Commenting on the collaboration, Heritage Bank’s Managing Director, Ifie Sekibo, said that the partnership was one of the many initiatives of the bank’s foundational objectives of wealth creation, preservation and transfer across generations, adding that the bank offers the gold commodity market three focal contact points in partnership, knowledge and perspective sharing, which ensure that every transaction was auditable to protect investors.
Sekibo, who was represented by the bank’s Divisional Head, Strategy and Business Solutions, Olusegun Akanji, said the bank had created a buying centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.
In his comments, the Managing Director, LCFE, Akin Akeredolu-Ale, who also commended Heritage Bank for its critical role in aiding the fundraising and the financier institution for the Dukia Gold’s diversified financial instruments, affirmed that this would enhance the company credibility rating and put Nigeria on the global map.
He assured that the LCFE was ready to support all the stakeholders in the gold sector in the areas of market creation, price discovery, and dissemination of market information, among others.
The bank’s Divisional Head, Agribusiness, Natural Resources & Project Devt., Gbenga Awe, explained that one of the benefits of the initiative was that the local miners could now trade their gold at the bank’s designated experience centers, as solid foundation had been created for market, price and asset discovery.
