Securities and Exchange Commission (SEC)
Commodity exchanges have been described as critical to enabling investment diversification, risk management, price discovery and transactional efficiency which will in turn create jobs and facilitate economic development among other benefits.
The Director-General, Securities and Exchange Commission, Mr. Lamido Yiguda, stated this at a one day stakeholder sensitisation workshop on commodity standards organised by SEC in collaboration with the Standards Organisation of Nigeria in Kano.
Yuguda stated that Commodity exchanges had the potential to efficiently link commodities to industries thereby creating jobs, improving living standards and unlocking the economic potentials of farming communities, promoting rural development, enhancing financial inclusion of small holder farmers, and ultimately facilitating economic development, amongst other benefits.
He described the workshop as indeed timely considering government’s policy shift towards economic diversification and the need to deepen capacity across the agricultural value chain.
He said a thriving commodity trading ecosystem, with grading and standardisation features, would ensure compliance with established grades and standards, eliminate or reduce the proliferation of substandard commodities in the markets, and encourage global acceptance of commodities produced in Nigeria, among other benefits.
According to the SEC boss, the Technical Committee on Commodities Trading Ecosystem had in 2017 developed roadmap for the actualisation of a vibrant commodities ecosystem.
The committee specifically identified the development of a grading and standardisation system that will align with international best practice as an important precursor in achieving vibrancy in the ecosystem. “I am happy to report that the Ecosystem Roadmap Implementation Committee has been working tirelessly on the development of a grading and standardization system.
The initial stage of the development process would concentrate on delivery of standards for agricultural commodities.
“In this regard, we are working closely with the SON to create awareness for existing agricultural commodities standards, but more essentially to obtain feedback from stakeholders on the standards to be presented for consideration of stakeholders at this Workshop to trigger a review of inadequate standards if and where applicable,” he said.
In addition, Yuguda said the 10- year capital market master plan, which is the blueprint for the growth and development of the capital market over the next decade, designates commodities exchanges as critical for enabling investment diversification, risk management, price discovery and transactional efficiency.
He said efficient commodity exchanges coupled with a grading and standardisation system that will align with International best practice are no doubt critical elements in achieving a thriving commodity trading value chain
