Nigeria UAE commodity partnership targets $400bn opportunities in agriculture, energy, gold, and lithium while attracting private-sector investment

Nigeria and the United Arab Emirates are exploring ways to collaborate to enhance the development of Nigeria’s vast commodity ecosystem, which holds potential to unlock more than $400 billion, the Lagos Commodities and Futures Exchange announced on Monday in Lagos.

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The partnership seeks to galvanise private-sector investors to position Nigeria as a gateway to Africa’s $1 trillion commodities market, according to Akin Akeredolu-Ale, Managing Director of the Exchange.

Nigeria alone represents about $400 billion in opportunities across agriculture, energy, gold, and lithium.

LCFE’s collaborations with the UAE are expected to advance lithium processing, livestock development, food security, and commodities trading.

Ambassador of the United Arab Emirates, Salem Saleh Omar Al Jaberi, paid a courtesy visit to the LCFE to further discussions on areas of collaboration.

Mr Akeredolu-Ale highlighted the role of private-sector-led initiatives in driving efficiency, capital formation, and infrastructure delivery.

He cited projects such as the Second Niger Bridge and Sukuk-backed road networks as evidence that structured private investment ensures continuity and measurable outcomes.

He added that the Exchange is expanding its ecosystem of dealing member firms and commodity brokers while promoting gold trading through LBMA-standard bars stored in Free Trade Zones, allowing tariff-free access for institutional investors, including pension funds.

The LCFE boss noted increased involvement in large-scale rice production, livestock and fodder development, and the production of export-ready organic produce.

He disclosed that memoranda of understanding have been signed with some state governments, with the UAE granted first right of refusal on commodity exports.

Recent reforms decentralising electricity generation have created new private investment opportunities in metering, revenue collection, and infrastructure optimisation, Mr Akeredolu-Ale said.

“These initiatives underscore LCFE’s commitment to leveraging private-sector partnerships to drive inclusive growth, deepen Nigeria’s commodities markets, and strengthen the country’s position as a hub for Africa’s rapidly expanding commodity economy,” he added.

Walid Farghal, Director General of AIM Congress, called for broader participation in the commodities market, particularly among entrepreneurs and youth.

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He highlighted the role of digitisation, tokenisation, and strategic promotion in attracting global investors, drawing parallels with Dubai’s National Bonds model, and emphasised that investor confidence is driven by liquidity, ease of exit, and secure market structures.