From Moses Emorinken, Abuja
The Securities and Exchange Commission (SEC) is selling the buying and selling of agricultural produce and strong minerals on the capital market as a part of efforts to bolster the Federal Government’s actions in diversifying the financial system.
Its Acting Director-General, Mary Etuk, at a briefing in Abuja, on the forthcoming International convention on Nigeria’s commodities market, stated agriculture stays an vital a part of that plan, holding the potential of delivering on the nation’s meals safety wants, offering jobs and rising our overseas trade earnings.
“Despite this potential of the sector to ship on these vital metrics, credit score to the sector has remained lower than 5 per cent of financial institution lending for the previous 10 years severely hampering its growth. The capital market has the capability to unlock higher entry to credit score and finance for the sector by means of revolutionary financing constructions and merchandise.
“This can also be true for Nigeria’s ample minerals, particularly the strong ones. Many of those minerals are dug up on a subsistence foundation and offered in markets world wide in disorderly style.
“It is excessive time we created a market the place they might be traded in an orderly method, to the good thing about the financial system.
“A structured market for commodities will provide a fairer playing field for local market participants, while providing the required infrastructure for the international market to be exposed to Nigerian commodities. It will also provide price discovery to market participants – producers and consumers alike – leading to efficiency and better decision making,” she stated.
According to her, the three commodities exchanges in Nigeria backed by sturdy public participation from key stakeholders, notably financiers, donors, public stakeholders and authorities officers, and worldwide commodity exchanges in addition to the bigger retail funding neighborhood might unlock extra capital within the short-to-medium time period.
“These important points and benefits have dictated the Commission’s decision to host the International Conference on the Nigerian Commodities Market (ICNCM 2020), with the theme ‘Commodities trading ecosystem: Key to diversifying the Nigerian economy,’”.
Chairperson, Marketwide Technical Committee on Community Trading Ecosystem, Daisy Ekine, stated the commodities to be launched by the committee unfold throughout agriculture, steel, crude oil, and strong mineral.
“The committee is an off-shoot of the capital market grasp plan on neighborhood ecosystem overview and we are going to start with agriculture produce because the lowest hanging fruit.
“ICNCM 2020 will gather relevant stakeholders in the commodities ecosystem to consider the most pertinent issues in growing the ecosystem in Nigeria, with the end goal of creating an enabling environment for the deployment of innovative solutions that improve processes, products, productivity,” he stated