The Director General of Securities and Exchange Commission(SEC),Mary Uduk has said that her commission is collaborating with all relevant stakeholders to implement the 10-year Capital Market Master Plan with the aim of making Nigeria’s capital market one of the world’s deepest and most liquid as well as the largest in Africa by 2025
She stressed that one of the crucial initiatives of the Plan is to develop a thriving commodities trading ecosystem,maintaining that Nigeria is well endowed in agricultural, metals and energy commodities.
The Nigerian VIncentive-based RISK Sharing System For Agricultural Lending(NIRSAL) CEO,Abdulhameed Aliyu in his contribution stated that his establishment has concluded plans with the central bank to de-risk agriculture in the country by 75% to encourage investors who are ready to play in the agric value chain.
He said NIRSAL will run the programme as agricbusiness and not as agriculture as they would be making it a big business.
Uduk who said the above at a round table organised by SEC at Eko Hotel & Suites ,V.I. Lagos disclosed that ” Currently, our potential as a nation is grossly under utilised in the area of commodities. There is therefore the need for these commodities to be efficiently harnessed to the benefits of our consumers, industries and governments.
‘” We believe that if we can develop and institutionalise a vibrant commodities trading ecosystem in Nigeria, we can substantially address problems such as lack of storage, poor pricing, non-standardization as well as low foreign exchange contribution affecting our agriculture and other commodities sub-sectors.
” In achieving this, the roles of commodity exchanges are very critical. They bring price transparency and value addition to farmers; they ensure quality products for buyers, provide investment opportunities across the value chain, provide additional class of asset for investors and help diversify the nation’s economy in line with the current administration’s agenda”.
Addressing the round table which was graced by VIRSAL CEO,Abdulhameed Aliyu,CBN Director,M.D.Suleman,NESG Former Chairman,Abba Kyari,Ade Adefeke Vice-President, Olam and Zainab Bahari of Nigerian Commodity Exchange (NCX) among others she recalled that Nigeria began the process of establishing a commodity exchange in 1989 when an Inter-Ministerial Technical Committee was set-up to examine the possibility of setting up a commodities exchange in the country.
” However, it was only in 2001 that the Federal Government directed the conversion of the then Abuja Stock Exchange to a commodity exchange called Abuja Securities and Commodities Exchange, which was later renamed Nigerian Commodity Exchange.
“While the Nigerian Commodity Exchange is still undergoing some re-structuring and re-capitalisation required for it to become fully operational, the Commission registered the first private commodity exchange, AFEX Commodities Exchange in 2014, and the Lagos Commodities and Futures Exchange early this year.
” But we still have a lot to do. We have the challenging task of transitioning from a grossly informal commodity trading system to one consummated on the platforms of commodity exchanges. Currently, the transactions through commodity exchanges are insignificant compared to what take places in the informal markets, even among industrial commodities users