By Peter Egwuatu
THE Securities and Exchange Commission, SEC has disclosed that the report of Technical Committee, TC, on commodities trading ecosystem in Nigeria was being implemented and was expected to make the much desired impact on the commodities trading that would stimulate Nigeria’s capital market and economic growth.
Acting Director general of the Commission, Mary Uduk, confirmed this to Vanguard in Lagos saying: “The Commission through the activities of the Technical Committee (TC) on Commodities Trading Ecosystem which draws members from various stakeholders in the commodities ecosystem including the Central Bank of Nigeria, Financial Markets Dealers Quotations (FMDQ), Nigeria Stock Exchange (NSE), Standards Organization of Nigeria (SON), Bank of Agriculture (BOA), The Nigeria Incentive-Based Risk Sharing System (NIRSAL), Financial Systems Strategy (FSS 2020), AFEX Commodities Exchange Ltd and the Nigerian Commodity Exchange (NCX) is being implemented and it is expected to make the much desired impact on the capital market and economy in general.”
She stated that the commodities trading ecosystem in Nigeria has been one to watch for the past couple of years, with the Federal Government intensified efforts towards diversifying the economy and reducing overdependence on crude oil. “A lot of investments have been channelled towards the commodities space especially the agricultural commodity market space numerous programmes such as the CBN Anchor Borrowers Programme as well as the NEXIM Bank Export stimulation Fund are to mention some of the few deliberate efforts of Government to ensure food stability and sufficiency in the country,” she noted.
Meanwhile, the SEC has given final approval for the take off of the Lagos Commodity and Futures Exchange (LCFE) being promoted by the Association of Securities Dealing Houses of Nigeria (ASHON) to operate as a full fledged commodities and futures market. By the new approval, the commodities and futures market is set to leverage the assembled best talents to commence operations as an influential brand, established to unlock its true potential in the financial market.
Besides, SEC has also approved the appointment of the top management team to drive the operations of the new Exchange.