Kian Smith FZE is set to list and trade over N21 billion worth of 1 kg LBMA gold bars on the floor of the Lagos Commodities and Futures Exchange (LCFE).
With gold prices at record-level highs, Africa—especially Nigeria—is making great strides to integrate gold into the economy as a gold-backed instrument with increasing acceptance of gold as an alternative asset class.
The National Pension Commission (PenCom) has recently revised its regulations to allow Nigerian pension funds to invest in gold-backed securities. We are proud to announce that the Securities and Exchange Commission, Nigeria (SEC), has approved the listing of Kian Smith Group Company FZE's supply of 1 kg LBMA gold bars on the Lagos Commodities and Futures Exchange (LCFE).
The initial offer to be listed would be 100 kg gold bars, which comes to well over 21 billion in Naira. This initial offer is to test the responsiveness of the Nigerian capital market to structured gold trading, and then more tranches of gold contracts will be listed on the Commodities Exchange.
Listing dealing member Firm: WCM Capital Limited
Receiving and settlement bank: FCMB GroupRegistrar: Central Securities Clearing System Plc
Collateral and vault manager for the transaction: Bankers WarehouseInsurance coverage: Leadway Assurance.
We would also like to appreciate the efforts of the African Development Bank Group (AFDB) especially Oyebode Oyetunde, Ph.D. in their consistent support to see metals on the commodity exchanges in Africa. We are a beneficiary of their advocacy.
Kian Smith is also working with the Lagos Commodities and Futures Exchange on an offering of 100-gram fractional units of a kilobar. From fractional ownership with LCFE to tokenized gold with Kian Smith SANU, we are dedicated to getting gold to the people.
To buy 1 kg of LBMA gold via LCFE, contact WCM Capital or any LCFE Dealing Member Firm
Nere Emiko, the MD/CEO, explained that Kian Smith was bringing 1 kg LBMA gold bars certified by the London Bullion Markets Association to list and trade on LCFE. The initial offer to be listed would be 100 kg gold bars, which come to well over N21 billion. Nere stated that this initial offer was to test the responsiveness of the Nigerian Capital Market to structured gold trading and more tranches of gold contracts will be listed on the commodities exchange.
She noted that investors can invest in as little as 100 g out of the 1 kg gold bars and that all the risk management protocols have been taken into consideration. The gold bars are all LBMA certified; each bar is insured, and they are stored in a secure vault managed by vault/collateral managers.
She noted that the gold sector has shown an upward trajectory in valuation over time. She noted that in 2000 and early 2024 an ounce of gold was trading at, $1,800 and $3,200 respectively and today, its trading at $4,450. Nere also stated that the forecast for gold for 2026 is set to still get to as high as $5,000/$6,000 per ounce showing great promise. She explained that this is the right time for investors to participate and invest in the gold space.
Yemisi Edun, managing director/ CEO, First City Monument Bank Limited (FCMB), noted that this transaction marks a new level of maturity for the Nigerian Capital Market. The synergy between Kian Smith’s supply chain excellence, the LCFE’s trading floor, and First City Monument Bank Limited as the receiving bank, creates a blueprint for the future of commodities trading. FCMB remains committed to being the gateway for investors seeking to diversify into structured high-growth solid mineral contracts.
Patrick Ajayi, managing director of WCM Capital, the listing dealing member firm, described gold as a store of value that has existed for several years. He explained the need to have gold in investment portfolios for stability. He also noted that the Gold Spot contracts were for all investors both institutional and individual investors.
He explained that as the dealing member firm, in bringing Kian Smith to the market, it’s important that investors understand the risk management protocols that the instrument has gone through before listing on the Exchange.
Ajayi explained that each Gold bar was sealed and the quality and quantity is assured; that is the added comfort of listing the gold on an exchange because investors can rely on the fact that the protocols have all been taken into consideration.
To buy 1 kg of LBMA gold via LCFE, contact WCM Capital or any LCFE Dealing Member Firm