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The Director General of the Securities and Exchange Commission Mr. Lamido Yuguda,has described commodities exchanges 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.
Yuguda,who stated this at a one day stakeholders sensitisation workshop on commodities standards organised by the SEC in collaboration with the Standards Organisation of Nigeria in Kano, disclosed
that commodities exchanges have 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.
According to him,a thriving commodities trading ecosystem, with grading and standardization features, would ensure compliance with established grades and standards, eliminate or reduce the proliferation of sub-standard commodities in the markets, and encourage global acceptance of commodities produced in Nigeria, among other benefits.
He added that the Technical Committee on Commodities Trading Ecosystem had in 2017, developed a roadmap for the actualization of a vibrant commodities ecosystem.
The said the committee identified the development of a grading and standardization system that will align with International best practice as an important precursor in achieving vibrancy in the ecosystem.
He added:“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 also said that 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.
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