SEC Charges LCFE, Other Commodities Exchanges on Investor Protection

Kayode Tokede

The Securities and Exchange Commission (SEC) has urged Lagos Futures and Commodities Exchange (LCFE) and other commodities exchanges in the country to have investor protection at the centre of their operations in a bid to improve investor confidence and attract more investors.

The Director General of the SEC, Mr. Lamido Yuguda gave the charge during the presentation of Eko Gold Coins to the Management of the Commission by the LCFE in Abuja yesterday.

Yuguda specifically urged the LCFE and the entire value chain to always have investor protection at the core of their work because eventually, this is what will make the product succeed.

According to him, “Now the gold itself has great value, once you put out your money and buy it, you have value that is incontrovertible, but where we need to be careful is the associated investment product, the derivatives products.

“The derivatives products are built around the product itself. We must have investor protection at heart because if it is taken off and investors have confidence that anytime I want to sell this investment am actually likely to get more than I put in which is the true meaning of investment.”

The SEC DG stated that when people invest, they are postponing current consumption for future consumption, and need to be paid some returns as a price for that postponement of current consumption.

 In his remarks, Chairman, Board of Directors, LCFE, Chief Onyewenchukwu Ezeagu stated that the core vision of setting up LCFE was to provide a viable structure that will transform the Nigerian commodities market and redefine practice standards that would catalyse economic growth in Nigeria.

According to him, “With your support at the SEC, he said this novel foundation has been laid and gradually the commodities ecosystem is being reformed and transformed with the development of innovative products and fungible Instruments that are being introduced into the Market.

“One of such products developed by LCFE, “The Eko Gold Coin” is why we have come to pay the Commission this visit today. On July 28, 2022, the Lagos Commodities and Futures Exchange was commissioned by the Executive Governor of Lagos State, His Excellency, Mr. Babajide Olusola Sanwo-Olu with the momentous launch and unveiling of the first physical gold asset tradeable on a Commodities Exchange in Nigeria, “The Eko Gold Coin”. 

“it is my greatest honour and elation to present the first tranche of this exclusive gold coins which is available for purchase at LCFE to you and your esteemed team at the Commission.  Director General Sir, as the saying goes:  “No one lights a lamp and put it in a secret place; rather it is set on a lampstand, where it gives light to all in the house,” he stated.