Nigeria to introduce crude trading on stock exchange

Nigeria to introduce crude trading on commodities exchange

LAGOS, April 19, 2024 – Up to 20% of Nigeria’s crude will be traded on the Lagos commodities exchange under a new plan in a bid to expand financing for the country’s oil and gas sector, Bloomberg reported on Friday.

The shift would mark the first time Nigeria has seen its crude traded on an exchange.

“The consideration is that 10 to 20% of Nigeria’s crude oil production be provisioned for trading on the floor of the Lagos Commodities and Futures Exchange,” Lagos Commodities and Futures Exchange (LCFE) CEO Akinsola Akeredolu-Ale told Bloomberg.

Under the plan, the LCFE – which launched trading in 2022 with a focus on gold – will connect oil producers to local and offshore markets, curb default risks, boost product availability and encourage more investments, the report cited Akeredolu-Ale as saying. Around 50 million barrels are expected to be traded.

A date for the launch of crude trading was not given.

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