NIGERIA – Heritage Bank Plc is set to unlock N344 trillion (US$841.67bn) market worth of gold after a collaboration with Dukia Gold & Precious Metals Refining Co. Limited and concluded plans of being listed on the Lagos Commodities and Futures Exchange.
The bank said the move would expand revenue in the non-oil sector through diversification, by stimulating growth in solid minerals in line with the objectives of Economic Recovery and Growth Plan and would also put Nigeria on the global map with regards to standardized gold tracing, sourcing procurement and trading it.
The Chairman, Dukia Gold, Tunde Fagbemi, who commended Heritage Bank as the project financier and for its other pertinent supports, said Heritage had so far been the banker’s bank for playing key role in the backing to promote the first solid mineral listing on Exchange in West Africa.
He explained that the instruments which would be in the form of Exchange Traded Notes, Commercial Papers, and other gold-backed securities would enable the company to deepen the commodities market in Nigeria.
He added that it would increase capacity, generate foreign exchange for the government to diversify external reserves and create massive employment across the metal production value chain.
“We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange. The listing shall enable us facilitate our infrastructure development, expand capacity and create fungible products,” Fagbemi said.
“This has potential to shore up Nigeria’s foreign reserve and create an alternative window for preservation of pension funds. As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies.
“Our refinery will also have multiplier effects on the development of rural areas anywhere it is located. There must be constant power supply, good road network and other social amenities, apart from employment opportunities for the rural dwellers.”
He also noted that with its current 25 production capacity pound and further room for expansion, Dukia Gold had the ability to meet both local and international demand through its gold refinery services to smelt melts.
Commenting on the collaboration, the Managing Director/Chief Executive Officer, Heritage Bank Plc, Ifie Sekibo, said that the partnership was one of the many initiatives of the bank’s foundational objectives of wealth creation, preservation and transfer across generations.
He disclosed that the bank offered the gold commodity market three focal contact point in partnership, knowledge and perspective sharing, which ensured that every transaction was auditable to protect investors.
Sekibo who was represented by the Divisional Head, Strategy and Business Solutions, of the Bank, Olusegun Akanji, said the bank had created a buying center for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.