LCFE, UAE Investors Position Nigeria For $1trn African Commodities Market

The Lagos Commodities and Futures Exchange (LCFE) is deepening strategic partnerships with investors from the United Arab Emirates (UAE) and other private-sector players as part of efforts to position Nigeria as a major gateway to Africa’s estimated $1trn commodities market.

Nigeria alone accounts for about $400bn in commodities opportunities spanning agriculture, energy, precious metals such as gold, and critical minerals including lithium.

LCFE said collaborations with UAE investors are expected to accelerate value addition across key segments of the commodities value chain, including lithium processing, livestock development, food security initiatives and structured commodities trading.

The Managing Director of LCFE, Mr. Akin Akeredolu-Ale, disclosed this while receiving the Ambassador of the United Arab Emirates to Nigeria, Salem Saleh Omar Al Jaberi, on a courtesy visit to the Exchange in Lagos.

He stressed that private-sector-led initiatives remain critical to improving efficiency, mobilising capital and delivering infrastructure required to deepen Nigeria’s commodities ecosystem.

According to Akeredolu-Ale, structured private investment models have demonstrated their effectiveness in Nigeria, citing landmark projects such as the Second Niger Bridge and Sukuk-backed federal road infrastructure as examples where continuity and measurable outcomes were achieved outside traditional public funding constraints.

He noted that LCFE is expanding its market ecosystem through the onboarding of additional dealing member firms and licensed commodity brokers, while also strengthening gold trading activities.

The Exchange, he said, is promoting the use of London Bullion Market Association (LBMA)-standard gold bars stored within Free Trade Zones, a structure that allows tariff-free access for institutional investors, including pension funds.

The LCFE chief further revealed that the Exchange is scaling up its involvement in large-scale rice production, livestock and fodder development, as well as the cultivation of export-ready organic produce.

Memoranda of understanding have already been signed with several state governments to support these initiatives, while the UAE has been granted a first right of refusal on selected commodity exports as part of the partnership framework.

In the energy sector, Akeredolu-Ale said recent reforms decentralising electricity generation have opened new private investment opportunities in areas such as metering, revenue collection and infrastructure optimisation, creating additional prospects for commodities-linked investments.

Also speaking during the visit, the Director General of AIM Congress, Mr. Walid Farghal, called for wider participation in Nigeria’s commodities market, particularly among entrepreneurs and young investors.

He emphasised the role of digitisation, tokenisation and strategic market promotion in attracting global capital, drawing parallels with Dubai’s National Bonds model.

Farghal noted that investor confidence is largely driven by liquidity, ease of exit and the presence of secure, transparent market structures, adding that these elements are essential for Nigeria to compete effectively in the global commodities space.

The engagements with UAE investors, LCFE said, underscore its commitment to leveraging private-sector partnerships to drive inclusive economic growth, deepen Nigeria’s commodities markets and strengthen the country’s position as a central hub in Africa’s rapidly expanding commodities economy.