Lagos Commodities Exchange to empower 10 million youths on trading

The newly-licensed Lagos Commodities and Futures Exchange ( LCFE) is targeting no fewer than 10 million Nigerian youths for empowerment as commodities traders under its proposed seamless capacity building.

The Exchange shall leverage its state-of-the-art technology to bring millennials and those in the group of ‘Generation Z’ to the commodities and futures exchange ecosystem as future operators. Details of the eligibility criteria are being worked out.

Managing Director, Lagos Commodities and Futures Exchange ( LCFE), Mr Akin Akeredolu-Ale unfolded the plan during the ringing of opening bell on the Exchange in commemoration of 2020 World Investment Week ( WIW) which focuses on financial literacy.

He said the Exchange was looking at integrating more than 10 million young commodity traders across the six geo-political zones of the country into the capital market through its LCFE youth commodity trading account platform.

He noted that the current investing population in the Nigerian capital market is still heavily populated by the older generation and LCFE is interested in introducing and attracting the younger generation to the market.

According to him, the large varying commodities available due to the vast natural resources in Nigeria provides the opportunities for the young generation to trade in different types of investment products.

“The listing of commodity contracts and commodity-backed commercial papers for capital raising on a commodities exchange by stakeholders of the commodities ecosystem is one of many ways that new and existing investors of the capital market can participate. Other investible options available include futures, forwards and spots contract based on all forms of commodities- agriculture, oil and gas, solid minerals and currencies,” Akeredolu-Ale said.

He assured that LCFE is committed to creating awareness for the investing public through a carefully planned list of knowledge sharing sessions which will be conducted in partnership with the regulators and other stakeholders of the capital market and the commodities ecosystem.

According to him, these knowledge sharing sessions have been carefully planned to highlight various commodity finance areas ranging from investible ethical instruments, options for pension fund investment in commodities and many more.

“Investor education is very important to us at Lagos Commodities and Futures Exchange (LCFE). The call for diverse investment opportunities has grown increasingly louder in the past few months. As a unique commodities Exchange in the Nigerian capital market, we understand the need to deepen the capital market by creating fungible investment instruments backed by commodities for investors,” Akeredolu-Ale said.

He pointed out the pivotal role of technology in finance noting that as a technology-driven commodities exchange, LCFE understands the role of technology in finance and it is exploring all the different and new technically-driven trends in the Fintech space.

“We are engaging with Fintech partners who play major roles in crowd funding, crypto currency and block chain technology. LCFE is looking forward to aligning with the Securities and Exchange Commission through the relevant technical committees to engage with the stakeholders in this unique fintech space to bring structure and support to the commodities ecosystem,” Akeredolu-Ale said.

He added that LCFE has also committed to providing access to relevant financial information and trading data from the commodities ecosystem through targeted partnerships.

He pointed out that the World Investor Week (WIW) is a week-long event aimed at raising awareness about the importance of investor education and protection, towards engendering the financial and overall wellbeing of the individual, and particularly in view of the effects of the COVID-19 pandemic.

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