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Listing On LCFE: Heritage Bank – Dukia Gold Set To Unlock N344trillion Market Worth Of Gold

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Heritage Bank for being part of valuable private sector collaboration with Dukia Gold & Precious Metals Refining Co. Limited is set to unlock the over N344trillion 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 (LCFE).

This move that will entrench 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 (ERGP) will also put Nigeria on the global map with regards to standardized gold tracing, sourcing procurement and trading it.

L-R: Olawale Akoni (SAN), Managing Partner, Babalakin & Co; Olusegun Akanji, Divisional Head, Strategy & Business Solutions, Heritage Bank Plc; Ife Fashola, Group Chief Executive of KADARI Capital; Tunde Fagbemi, Chairman, Dukia Gold; Akin Akeredolu-Ale, MD of Lagos Commodities and Futures Exchange (LCFE) and Olusoji Elias, Council General, Dukia Gold, during the LCFE-Dukia Gold media parley held yesterday at the LCFE Trading Floor in Lagos.

In summary, this was disclosed at the LCFE-Dukia Gold media parley held yesterday at the LCFE Trading Floor in Lagos.

Speaking at the parley, the Chairman of 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 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 (ETN), Commercial Papers (CP), 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.

“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 has the ability to meet both local and international demand through its gold refinery services to smelt melts.

Commenting on the collaboration, the MD/CEO of 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 further disclosed that the bank offer the gold commodity market three focal contact point in partnership, knowledge and perspective sharing, which ensure 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 centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.

Speaking, the MD, LCFE, Akin Akeredolu-Ale, who also commended Heritage Bank for its critical role in aiding the fundraising and the financier institution for the Dukia Gold’s diversified financial instruments, affirmed that this would enhance the company credibility rating and put Nigeria on the global map.

He noted that the LCFE was ready to support all the stakeholders in the gold sector in the areas of market creation, price discovery, and dissemination of market information, among others.

Gbenga Awe, Divisional Head, Agribusiness, Natural Resources & Project Devt., of Heritage Bank noted that one of the benefits of this initiative was that the local miners could now trade their gold at the bank’s designated experience centers, as solid foundation had been created for market, price and asset discovery.

Akintola noted that the firm had the capability, technicalities and the necessary accreditation to operate in the gold value chain.

He stated that the listing on the Lagos Commodities would raise awareness of performance of Dukia Gold to the investing world and position it as foremost number one Precious Metals Refining Company in Nigeria.

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Bitcoin Slumps To $35,000 After Federal Open Market Committee Report

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Bitcoin (BTC) is currently down 5.09%, trading at $35,686.47, just days after breaking the $40,000 level. The downturn did not just affect Bitcoin and the cryptocurrency market alone.

The stock market and commodities were not left out of the selloff which resulted from Federal Reserve Chair, Jerome Powell’s comments related to future interest rate hikes and concerns over rising inflation.

The comments led to major declines in both the cryptocurrency and commodity market, particularly Gold.

This online medium had earlier reported that Gold had fallen below the $1,800 mark, dropping over $130 since the beginning of this month after hitting a high of $1,916, which has not been touched since January 2021.

This crash was also caused by the same Federal Open Market Committee (FOMC) report.

Reasons for the decline in Bitcoin

First is the FOMC report. The Fed took a surprisingly aggressive tone as it handed down the decision yesterday.

Out of 18 Fed officials, 11 forecasts at least two quarter-point interest rate increases for 2023 which is a sign that the central bank has begun asset tapering discussions.

This boosted the dollar index which in turn gave strength to the dollar, which ultimately caused a decline in Bitcoin and the entire cryptocurrency market.

With the market already selling off as a result of the heat from the FOMC report, investors lost confidence in the market, thereby increasing the momentum of exchange inflows in cryptocurrencies like Bitcoin which ultimately brought about the decline in the market like we saw in the commodity market.

As seen above, Bitcoin’s price decline was also perpetrated by increased inflows to spot exchanges which led some analysts to speculate that traders who failed to cash out near the high are taking advantage of lower highs to lock in gains.

As the sell-off intensified as a result of the FOMC report, the NetFlow of BTC into exchanges saw noticeable selling pressure, which kept Bitcoin pinned below $36,000.

What Bitcoin’s tumble means

As Bitcoin failed to retake the $40,000 trading zone, investors need to keep a close eye on on-chain analytics which will point to where investor sentiments will be heading.

So far, some analytics are showing bullish signs as whale wallets holding between 100 BTC and 10,000 BTC have increased their holdings by 90,000 BTC over the past 25 days, suggesting a more positive long-term outlook.

The investors also need to be aware that MicroStrategy will be pumping the Bitcoin market by injecting a fresh $488 million which is also another bullish indicator.

 

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BUA DENIES INCREASE IN THE PRICE OF ITS CEMENT, FROWNS AT CARTEL- LIKE OPERATION TO DETERMINE PRODUCT PRICES

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The BUA group has denied increase in the price of it’s cement. The clarification came as a result of requests from customers as well as distributors who have been calling to find out whether, like DANGOTE Cement BUA had also increased its own price by 260 Naira.

In a signed statement released this afternoon, the BUA group insists that it stands by its earlier decision not to increase cement price which was communicated on April 24, 2021.

According to the management of BUA, they are aware that Dangote decided to increase the price of it’s cement by 260 NAIRA from June 14, 2021. The management also noted that even though there had been decline in cement demand due to commencement of rainy season, any further increase in price will disrupt, the normalisation or stabilisation  of prices.

The BUA group further stated that they will always be willing to play their role as a responsible corporate entity rather than associate with others to form a cartel to fix prices which will ultimately not be in the best interest of Nigerians.

In their words, ‘ The timing is not right for any increase on BUA’s part and we do not have any justifiable business reason to increase to increase our prices any time soon.

They also hope that the price increase by Dangote will not disrupt the downward trend of cement price movement

See statement:

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Fidelity GAIM Season 4 Final Draw To Hold On July 22

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….Bank To Enrich 15 Lucky Customers With Millions of Naira

Lagos Nigeria June 21, 2021: Fidelity Bank Plc, top Nigerian lender, has announced plans to enrich the lives of fifteen Nigerians with a total of 39 million Naira at the final draw of the Get Alert in Millions Campaign (GAIM) Season 4 savings promo, slated for July 22, 2021.

The savings promotion, which is specifically aimed at promoting the culture of saving among Nigerians, is one of the bank’s many initiatives aimed at rewarding new and existing customers for their unwavering loyalty and patronage.

Despite the fact that the promotion was halted in 2020 due to the Coronavirus (Covid-19) Pandemic and the resulting global lockdown, hundreds of Nigerians have benefited from this unique reward scheme in which lucky customers are credited with millions of naira and consolation prizes via a draw system.

The Chairman, Promo Committee, Fidelity Bank Plc, Mr. Richard Madiebo expressed his delight at the resumption of the savings promotion, stating that the campaign seeks to reward customers for their loyalty and patronage. According to Mr. Madiebo, for the past twelve years, the bank has empowered new and existing customers, providing an avenue for many to change their fortunes through its savings Promo.

He stated that the bank takes pride in keeping its promises, adding that the lender would continue to look out for innovative ways to satisfy and enrich its customers across the nation.

“And as we wind down on the 4th season of the GAIM promo, we are elated at the prospect of not only driving financial inclusion across Nigeria, but also at the unique opportunity to enrich the lives of our customers especially in times of economic uncertainties”, noted Madiebo

Over the years, the leading tier two Bank has continued to intensify its efforts and innovate ways towards ensuring customer and stakeholder satisfaction. Through this promo, Fidelity Bank has promoted financial inclusion through digital channels and enriched the lives of its custom

 

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