Major Gold Listing: Kian Smith to Trade N21 Billion in LBMA Gold on LCFE

In a significant development for Nigeria’s capital market, Kian Smith Company FZE is set to list and trade over 21 billion Naira worth of 1kg LBMA-certified gold bars on the Lagos Commodities and Futures Exchange (LCFE). This landmark transaction follows formal approval from the Securities and Exchange Commission, signaling a robust expansion of investment avenues within the country’s commodities sector.

Akin Akeredolu-Ale, Managing Director and CEO of LCFE, announced the approval, commending the SEC’s leadership for its supportive role. He highlighted that this initiative builds upon the success of the earlier EKO Gold listing, demonstrating the vast opportunities within the gold sector. Akeredolu-Ale emphasized that the Kian Smith transaction is poised to elevate the Nigerian capital market, aligning with broader economic ambitions. He also noted the timely nature of the listing, coinciding with new investment guidelines from PENCOM that could facilitate institutional participation.

Nere Emiko, Managing Director and CEO of Kian Smith, detailed the offering. The initial listing will involve 100kg of gold bars, valued at over N21 billion, serving as a test of the market’s responsiveness to structured gold trading. She assured that all risk management protocols are in place, with each LBMA-certified bar insured and stored in a secure vault managed by professional collateral managers. Emiko pointed to gold’s strong performance, noting its price appreciation from $1,800 per ounce in 2000 to approximately $4,450 currently, with forecasts suggesting potential growth to $5,000-$6,000 per ounce by 2026.

The LCFE has assembled a full suite of SEC-licensed professionals, including dealing member firms, receiving banks, and depository services, to ensure the gold contracts comply with all legal frameworks. This structured approach offers investors the chance to participate with holdings as small as 100 grams from the 1kg bars. As the nation focuses on economic diversification, this gold listing represents a pivotal moment, much as the Reps raise alarm over other fiscal matters and as court activities draw public attention to various sectors. This move underscores a strategic shift towards tangible asset investment, distinct from the entertainment buzz surrounding Asake’s Lagos concert or the headlines when agencies like the EFCC declare major actions.