AFEX, PenOp sign pact to boost commodities market

Celebrity Gig



AFEX, PenOp sign pact to boost commodities market

Commodities exchange platform, AFEX, has signed a Memorandum of Understanding with the Pension Fund Operators Association of Nigeria, to deepen the commodities market.

In a statement issued on Thursday, AFEX said that the challenges in Nigeria’s commodity markets were exacerbated by a shortage of financial market players, which limits capital availability, liquidity, and price discovery, making the ecosystem prone to price volatility and inefficiencies.

To address those challenges, it said that the collaboration with PenOP would expand the players in the commodity market and set the foundation for the potential entry of the pension industry into the commodities’ ecosystem.

READ ALSO:  Concession plans for Ajaokuta Steel, Itakpe ongoing – Osinbajo

Speaking on the MoU signing, Chief Executive Officer, PenOp, Oguche Agudah, said, “We are delighted about the signing of this agreement, as it is an important step towards consolidating AFEX and PenOp‘s efforts towards increasing the participation of PFAs in the commodities’ ecosystem. This partnership marks a crucial milestone in expanding the investment horizon of the pension industry.”

Meanwhile, AFEX has also boosted its offerings by listing Marble Capital Halal Commodities Fund on its AFEX Commodities Exchange.

The Marble Halal Commodities Fund, initially launched in May, is the first commodities fund approved by the Securities and Exchange Commission.

READ ALSO:  Terminal operator partners host community to boost development

At the bell-ringing ceremony for the listing, the Managing Director, Marble Capital, Akeem Oyewale, said, “This collaboration between Marble Capital Limited and AFEX signifies a potent force in the commodities space, showcasing the significant growth of the commodities market in the country. This move stretches the investment market, providing investors with more diverse and ethical options while promoting economic growth and food security in Nigeria.”

In his remarks, the President/CEO AFEX Nigeria, Akinyinka Akintunde, spoke on the prospects of the listing for the commodities market in Nigeria, saying “We have built a viable exchange model over the past decade, and are now ready to offer up our market infrastructure to other players looking to take advantage of opportunities in the commodities market.

READ ALSO:  NNPC, firm sign agreement to end licensing dispute

“Marble Capital has been a forward-thinking capital market operator, and the Marble Halal Commodities Fund is an ethical investment instrument that we are excited to admit on the Exchange.”

The Marble Halal Commodities Fund is a N3bn open-ended mutual.

Categories

Share This Article
Leave a comment