LCFE Receives NMDPRA Licence for Petroleum Trading
The Lagos Commodities and Futures Exchange (LCFE) has received a licence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to facilitate trading and clearing of petroleum liquids in Nigeria. Akin Akeredolu-Ale, Managing Director and Chief Executive Officer of LCFE, stated that this licence aims to promote transparent petroleum pricing, enhance competition, and improve investment decisions.
The Exchange plans to connect the physical petroleum market with the capital market through a technology-enabled platform, which will improve price discovery and trading information. Akeredolu-Ale emphasized that organized trading could provide reference prices based on observable transactions rather than individual negotiations.
The initiative will include two-way quotations, standardized contracts, and transparent processes to help businesses assess supplier prices. While exchange-based pricing may not eliminate differences due to transportation costs or taxes, it will provide a common reference for price assessment.
The licence represents a step in LCFE's expansion beyond its initial commodities market operations, which began trading in gold in 2022.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
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