Viable commodities exchange will enhance forex earnings, says SEC

To ensure that Nigeria realised its full potential in the commodities market and boost foreign exchange (forex) earnings, the Securities and Exchange Commission (SEC), has emphasized the need to have a vibrant Commodities Exchange in the country.

The Acting Director-General, SEC, Ms. Mary Uduk, gave the charge at the opening of a training session for Senior Managers and Management Staff of the Investment and Securities Tribunal (IST), Tuesday, in Abuja.

She was quoted in a statement, “The Capital Market Master Plan did an analysis of where we are, and where we want to be as the leading capital market in Africa, and one of the areas is the commodities market, which is very important, but one of the least developed. The Nigerian economy is mainly agrarian-driven, all states of the federation have exportable quantities of commodities, and we have some of the highest grades in the world.

She also noted that “Government wants to diversify to agriculture, and so we need to be able to export some of these commodities, if the farmers do very well, the earnings of the country will be boosted.” Uduk, represented by the Head of Department, Registration, Exchanges and Market Infrastructure, SEC, Mr. Emomotimi Agama, said Nigeria needs to harness the full potential in the commodities market, as produce can be exported, and industries set up to employ a large number of our teeming population.

“If we can develop this very well, our country will be better for it. What we need now are better pricing, transparency and better quality and these are what we set to achieve with the farmers and that is why the Commodities Exchange is important.

“The crude form they are trading now does not provide the farmers the benefit of price discovery, transparency among others. The only way to achieve these is to have an exchange hence the need arose to set up the Technical Committee to look holistically at all the issues.Besides, she noted that with the successful introduction of an initiative, there are bound to be disagreements and disputes, hence, the need to train the IST officials, who are empowered by Investments and Securities Act, ISA 2007, to adjudicate on capital market issues.

“By virtue of the ISA 2007, the Investments and Securities Tribunal, IST, is the adjudicator in event of such issues in the capital market. It is then important the IST which has this responsibility is properly aware of these issues and the types of disputes that will arise.”