Lagos Commodities and Futures Exchange secures approval for petroleum liquids trading

This approval aims to enhance price discovery, transparency, and investment in Nigeria's energy market by establishing a structured marketplace that connects the physical petroleum market with the capital market. The license was unveiled in Abuja at an event attended by representatives from NMDPRA, Securities and Exchange Commission SEC, S&P Global Ratings, Central Securities Clearing System CSCS, and Alliance Law Firm. Akin Akeredolu-Ale, Managing Director and Chief Executive Officer of LCFE, stated that this marks a significant moment for Nigeria's commodities market, with infrastructure for petroleum liquids trading falling into place.

He noted that the new market architecture will feature technology-enabled trading, two-way quotations, contract trading and settlement, and licensed collateral managers. Rabiu Umar, Chief Executive of NMDPRA, highlighted the authority's goal of creating a predictable and transparent regulatory environment to attract investment and support growth in the energy sector. Dr. Emomotimi Agama, Director-General of SEC, commended LCFE for this initiative, calling it a transformative opportunity.

Samera Mensah, Managing Director, Africa Research & Analytics and Country Head, South Africa at S&P Global Ratings, emphasized the importance of credible market infrastru