By Peter Egwuatu
There are indications that the Pan African Commodities Exchange, Lagos Commodities and Futures Exchange (LCFE) has appointed Cotecna Nigeria, with headquarters in Geneva, as one of its certification agents to ensure the global standard of commodities approved for trading on the LCFE.
As a prelude to this strategic appointment, talks have commenced between the two organizations.
Informed sources explained that the Managing Director and Chief Executive Officer of LCFE, Mr Akin Akeredolu-Ale and Geneva-based Cotecna’s Vice President, Business Development, Sales , Government and Trade Solutions Unit, Ms Lena Sodergren had in a closed-door meeting discussed the imperative of standardized testing, inspection and certification processes and procedures for agricultural products for LCFE whose market is scheduled for inauguration soon.
At the meeting, perhaps, both parties were said to have agreed on the need for certification and standardization of agricultural products for trading on the LCFE, establishment of laboratories for solid minerals and agricultural products at a distance as a risk aversion measure against contamination concerns and establishment of a Free Trade Zone where agricultural laboratories are best located.
The two organizations will likely review the potential alliance between them and update their Memorandum of Understanding (MoU) in the subsequent meeting and make it public.
Mr Akeredolu-Ale commended the management of Cotecna for the interest in the LCFE and advised the company to play a vital role in the Free Trade Zone, the last stage before the products are taken offshore.
“ We are glad to have fruitful discussions with the representatives of Cotecna.
We have confidence in Cotecna because of the extensive care and development the company has given to the pharmaceutical industry. Our immediate priority is to commence trading on agricultural products, oil and gas and solid minerals at the outset. But we are putting proper structures in place in developing standardization processes and procedures for certification of agricultural products.
“We are working round the clock with our technical partners. We remain committed to global best practices. We are already partnering with many credit bureaus and development agencies for seamless commencement of our operations.”, said Akeredolu-Ale.
Sodergren expressed delight at the establishment of LCFE. According to her, there is a need for Commodities Exchange in Nigeria. “ I am thrilled with the initiatives at LCFE. My voyages in Africa show that there is a demanding need for a structure like LCFE. Cotecna has invested in tracking devices for transit cargo. We can share technology with LCFE for visibility tracking. The tracking devices inclusively come with a monitoring display board” she said.