Heritage Bank, To Boost The N344 Trillion Gold Market

Heritage Bank Plc has announced that as part of a private-sector partnership with Dukia Gold & Precious Metals Refining Co. Limited, it is on track to unlock over N344 billion in market value of gold investible instruments in the solid minerals sector, with plans to list on the Lagos Commodities and Futures Exchange.

On Saturday, it announced this in a statement titled “Listing on LCFE: Heritage Bank-Dukia Gold set to unlock N344tn market worth of gold.”

The step, according to the bank, would diversify revenue in the non-oil sector by stimulating solid mineral growth in line with the objectives of the Economic Recovery and Growth Plan, as well as place Nigeria on the global map in terms of standardised gold tracing, sourcing, procurement, and trading.

This was revealed at the LCFE-Dukia Gold media parley at the LCFE Trading Floor in Lagos, according to the release.

Tunde Fagbemi, Chairman of Dukia Gold, praised Heritage Bank as the project financier and other relevant supports, saying Heritage had been the banker’s bank for playing a key role in promoting the first solid mineral listing on the Exchange in West Africa.

He went on to say that the instruments, which would be in the form of ETNs, Commercial Papers, and other gold-backed securities, would enable the company to expand Nigeria’s commodities market.

He went on to say that it will boost power, generate foreign exchange for the government to diversify its external reserves, and create a lot of jobs in the metals value chain.

“We are proud to be the first gold company with products listed on the Lagos Futures and Commodities Exchange,” Fagbemi said.

“By listing, we will be able to accelerate the development of our infrastructure, expand capacity, and create fungible products.

“This has the potential to strengthen Nigeria’s foreign reserve and provide an alternative window for pension fund preservation.

“As a global player, we adhere to the London Bullion Market Association’s and many other international bodies’ practices and procedures.

“Wherever our refinery is located, it will have multiplier effects on the development of rural areas.

“Aside from employment opportunities for rural dwellers, there must be consistent power supply, a good road network, and other social amenities,” Fagbemi explained.

Dukia Gold, he said, had the capacity to meet both local and international demand through its gold refinery services to smelt melts, with a current capacity of 25 pounds and space for expansion.

Heritage Bank Plc’s Managing Director/Chief Executive Officer, Ifie Sekibo, commented on the relationship, saying it was one of several projects aimed at the bank’s foundational goals of wealth formation, preservation, and transition through generations.

He explained that the bank provided the gold commodity market with three main points of contact: collaboration, expertise, and perspective sharing, all of which ensured that any transaction was auditable and protected investors.

Sekibo, who was represented by the Bank’s Divisional Head, Strategy and Business Solutions, Olusegun Akanji, stated that the bank had established a buying center to verify the quality and quantity of gold as well as a reference price to ensure price discovery in accordance with the global norm.