- Nigeria to Increase Earnings Through Commodities Trading
The Federal Government has said in order to diversify the economy and boost foreign revenue, the nation needs to develop commodities exchange trading system.
Vice President Yemi Osinbajo, who was represented by DR Yemi Dipeolu, the Special Adviser to the President on Economic Matters, at a roundtable conference on Nigerian Commodities Trading Ecosystem in Lagos on Thursday, said the growth of a vibrant commodities trading ecosystem was crucial to Nigeria’s diversification plan.
According to him, the nation has comparative edge in agriculture, solid minerals and oil and gas, hence why the emphasis in the medium term should be on the agricultural sector.
He, however, said in order to achieve vibrant commodities trading ecosystem, the capital market must function at an optimum level, the reason why the 10-year capital market master plan remained a key priority.
He said, “Agriculture accordingly occupies a pride of place in the Federal Government policy as stated on numerous occasions by the President and as articulated in the Economic Recovery and Growth Plan.
“The importance of agriculture was underscored during the last recession as its growth then of about three to four per cent prevented a steeper decline.
“Agriculture is important for food security and as a means of generating a quick production response. It is also important for job creation and employment and for producing the raw materials that go into agro-processing.”
Ms Mary Uduk, Acting Director-General, Securities and Exchange Commission, said the commission was working with some stakeholders to implement the 10-year capital market master plan with the objective of making Nigeria’s capital market one of the world’s most liquid and biggest market by 2025.
Uduk said, “Currently, our potential as a nation is grossly underutilised in the area of commodities. There is, therefore, the need for these commodities to be efficiently harnessed to the benefits of our consumers, industries and governments.
“We believe that if we can develop and institutionalise a vibrant commodities trading ecosystem in Nigeria, we can substantially address problems such as lack of storage, poor pricing, non-standardisation, as well as low foreign exchange contribution affecting our agriculture and other commodities subsectors.”