The Managing Director and Chief Executive Officer of the Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, has charged commodities brokers and qualified commodities traders to deepen their understanding of product generation and packaging to strengthen Nigeria's commodities ecosystem and position Africa for greater participation in global commodities trade.
Speaking at the 6th induction ceremony of the Exchange, Akeredolu-Ale described brokers as critical drivers of growth within the commodities market ecosystem, stressing that the future of the sector depends largely on their ability to develop viable products for listing on exchanges.
According to him, one of the major challenges confronting the commodities market is product generation, noting that brokers must become more deliberate in creating and packaging investment products capable of attracting both local and international participation.
"We must try as much as possible to be very attentive in learning and understanding product generation and how to properly package products for listing on the commodities exchange. The ecosystem is growing, and the pillars of that ecosystem are the brokers," he said.
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He noted that every capital raise through various market initiatives had been oversubscribed, a development he described as a clear indication of rising investor confidence and growing participation within the commodities market ecosystem.
The LCFE boss also disclosed that the Director-General of the National Pension Commission (PenCom) had approved guidelines enabling Pension Fund Administrators (PFAs) to invest pension funds in commodities products, a move expected to deepen liquidity and expand the market.
Highlighting the increasing continental relevance of Nigeria's commodities market, Akeredolu-Ale revealed that LCFE is part of the steering committee of the Association of African Commodities Exchanges (AACX), a body working to strengthen commodities exchanges across the continent.
Also speaking at the event, the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, represented by the Commission's Head of Lagos Zonal Office, John Briggs, commended LCFE for its initiatives aimed at expanding membership and promoting trading across diverse asset classes.
Agama assured the Exchange of the Commission's commitment to the continued development of Nigeria's commodities ecosystem, noting that regulatory reforms were being introduced to support a more structured, transparent, and globally competitive market.
In his remarks, the Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Sehinde Adenagbe, described the induction ceremony as the culmination of a rigorous two-week training programme designed to produce competent and ethical commodities professionals.
Adenagbe said the inductees underwent intensive virtual commodities training sessions and technical trade-matching engine training aimed at preparing them for the realities of the market.
He noted that LCFE has continued to distinguish itself within the Nigerian capital market by redefining the commodities ecosystem and expanding opportunities across agricultural commodities, solid minerals, oil and gas, and currencies.
According to him, the commodities market in Nigeria has long suffered from hoarding, price manipulation, and the exploitation of farmers and miners by middlemen, particularly in states such as Kano, Kaduna, Osun, Nasarawa, and Zamfara.
He urged the newly inducted brokers to uphold ethical trading practices, transparency, fair pricing, and strict traceability to eliminate exploitative middlemen and ensure that smallholder farmers and producers receive fair value for their products.
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"People will now commit their hard-earned money into your hands to be invested on their behalf. Let us help poor farmers and producers by ensuring they receive fair value for their work," Adenagbe said.
The ASHON chairman further commended the regulatory reforms introduced by SEC, particularly the implementation of the Investments and Securities Act 2025 and the formalisation of warehouse receipt systems, describing them as strategic steps toward building a globally competitive commodities market in Nigeria.
He charged the new inductees to embrace professionalism, transparency, discipline, and continuous learning in order to inspire investor confidence and contribute meaningfully to the growth of the commodities trading ecosystem.
