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Heritage Bank, firm to boost N344tn gold market

Heritage Bank Plc has said for being part of private sector collaboration with Dukia Gold & Precious Metals Refining Co. Limited, it is set to unlock the over N344tn market worth of gold investible instruments in the solid minerals sector with the concluded plans of being listed on the Lagos Commodities and Futures Exchange.

It said this in a statement titled ‘Listing on LCFE: Heritage Bank-Dukia Gold set to unlock N344tn market worth of gold’ on Saturday.

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 standardised gold tracing, sourcing procurement and trading it.

The statement said this was disclosed at the LCFE-Dukia Gold media parley at the LCFE Trading Floor in Lagos.

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.

Specifically, 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.

Fagbemi said, “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.

“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,” Fagbemi explained.

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.

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