Heritage Bank Plc has advised that the bilateral agreement between Lagos and Kano States on agribusiness should provide for a Commodity Exchange.
The two states signed the Memorandum of Understanding (MoU) last week at the Lagos – Kano Economic and Investment Summit which had the goal of ensuring a collaboration between the two states to boost commerce and agribusiness and consequently increase revenue generation by the states.
Speaking at the event during the plenary session, Olugbenga Awe, Group Head, Agric Financing, Heritage Bank, said there was an urgent need for the establishment of a Commodity Exchange, stating that it would provide the platform necessary for the success of the MoU signed by the states.
Awe said if the Exchange was established, it would make future contracts between traders and speculators in both states and others more possible and thereby enhance agribusiness in the country.
He stated that the establishment of a Commodity Exchange would help to put the activities of grain farmers at the Dawanau market, Kano as well as other commodities’ dealers in spotlight.
According to him, the volume of agribusiness and commerce going on daily in the market, which is the hub of grains and seeds trading across the world, needs to be complemented by appropriate policies.
Based on this, Awe advised the two states to ensure that the MoU they signed captures the establishment of a Commodity Exchange.
Doing that, he stated, would make traceability possible for every produce traded on the floor of the exchange unlike now when grains sourced in Kano or Lagos could be sold and consumed in other part of the country without knowing its source.