The Pension Fund Operators Association of Nigeria has signed deal with Nigeria’s leading commodities exchange platform, AFEX, as part of the efforts to deepen liquidity in 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.
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, a N3 billion open-ended mutual, initially launched in May, is the first commodities fund approved by the Securities and Exchange Commission.
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.
“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.”
