By Chinwendu Obienyi and Chukuma Umeorah


The Chief Executive Officer, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, has stated that the exchange is working with the Securities and Exchange Commission (SEC) to meet the trading requirements for crude oil trading on the exchange’s platform.

According to him, 10-20 per cent of Nigeria’s crude oil production could be provisioned for trading on the floor of the LCFE.

Speaking in an interview at the weekend, Akeredolu-Ale noted that the addition of crude oil and gas to LCFE’s trading portfolio diversifies Nigeria’s commodities market, reducing dependency on oil exports and offers a hedging mechanism against oil price fluctuations which will allow producers to lock in prices and manage risks better.

He added that with the LCFE trading crude oil, Nigerians can participate directly in the oil market, benefitting from the revenues generated and could lead to increased local investment and job creation in the sector.

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“Working closely with the Securities and Exchanges Commission (SEC) ensures that the trading meets regulatory standards, protecting investors and maintaining market integrity. Trading in crude oil futures contracts will boost the capital market by attracting more investors and increasing trading volumes. This can lead to the development of new financial products and services in the commodities sector,” he explained.

As of March 2024, Nigeria’s crude oil production, excluding condensates, hit 1.23 million barrels per day, a significant shortfall from the budget benchmark of 1.78 million bpd. In the past, almost all of Nigeria’s crude oil was exported. However, with the rise of the country’s refining capacity, part of its oil output has been going to local refining, particularly to Dangote Refinery.

The Lagos Commodities and Futures Exchange is one of the licensed commodities and futures exchanges in Nigeria. Others include Nigerian Commodity Exchange, AFEX Commodities Exchange, and Gezawa Commodity Exchange.

The LCFE received an operating license from the SEC in 2019 and started trading in 2022 with gold. To date, it has facilitated transactions exceeding $58,000 through licensed commodity brokers.

Some of the commodities that trade on the platform include agricultural produce such as soya beans, paddy rice, maize, sorghum, sesame seeds, ginger, cassava, palm oil, and shea (dry nut and butter). Solid minerals such as lithium, lead ore, florite, zinc, iron ore, kunzite, as well as gold are also currently traded on the exchange.