Nigeria’s commodities market received a boost after Kian Smith FZE listed NGN21bn ($23mn) worth of gold bars on the Lagos Commodities and Futures Exchange (LCFE), following approval from the country’s Securities and Exchange Commission (SEC).

The listing involves an initial tranche of 100kg of London Bullion Market Association (LBMA)-certified gold, segmented into 1kg bars, which will be tradable in fractions as small as 100g, according to The Punch.

Kian Smith managing director Nere Emiko said the gold has undergone full verification and risk controls. “All the gold bars are LBMA-certified, insured and stored in secure vaults,” she is quoted as saying. “This first tranche is designed to test market appetite for structured gold trading, and more tranches will follow.”

LCFE officials said the listing marks a major step in formalising Nigeria’s largely informal gold market, improving price discovery, transparency and regulatory oversight.

Yemisi Edun, managing director of First City Monument Bank (NGX:FCMB), which is acting as the receiving bank for the transaction, described the deal as a milestone.

“This transaction signals a new level of maturity for Nigeria’s capital market,” Edun said, according to The Punch, citing the collaboration between Kian Smith, LCFE and banking partners.

Patrick Ajayi, managing director of WCM Capital, the dealing member firm facilitating the listing, said investor safeguards were central to the approval process. “It is important investors understand the risk-management protocols the instrument has gone through before listing on the exchange,” he said.

The development comes as Nigeria pushes to deepen its commodities trading ecosystem and expand beyond agriculture into precious metals, amid rising investor demand for safe-haven assets.

LCFE officials told BusinessDay that further precious-metal listings are expected in the coming months as the exchange seeks to attract institutional capital and mining firms into regulated trading platforms.