By Tony Obiechina, Abuja
The need for the development of a vibrant commodities trading ecosystem has again been emphasised in order to diversify the economy away from dependence on crude oil for improved government revenue and foreign exchange earnings
This was stated by Vice President Yemi Osinbajo at a Roundtable on Nigerian Commodities Trading Ecosystem held by the Securities and Exchange Commission, SEC in Lagos, Thursday.
Represented by Dr. Yemi Dipeolu, Special Adviser to the President on Economic Matters, Osinbajo said the Commodities Trading Ecosystem ecosystem is of paramount interest because Nigeria has an abundance of natural resources and accordingly a comparative advantage in agriculture, solid minerals and oil and gas, hence emphasis in the immediate term is the agricultural sector.
A statement by SEC in Abuja on Thursday quoted Osinbajo as saying that the Federal Government attached great importance to an active and vibrant capital market which will contribute to national growth and development.
According to him, in order to achieve this objective, the capital market has to operate at an optimum level which is why the implementation of the 10 year Capital Market Master Plan remains a key priority.
The Vice President said, “Agriculture accordingly occupies a pride of place in 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 percent prevented a steeper decline. Agriculture is also important for food security and as a means of generating a quick production response.
“The agricultural sector is also important for job creation and employment and for producing the raw materials that go into agro-processing. Indeed, the subsisting Agriculture Promotion Policy specifically aims to ‘integrate agricultural commodity value chains into the broader supply chain of Nigerian and global industry’.
In her welcome address, Acting Director General of the SEC, Ms. Mary Uduk said the Commission is collaborating with all relevant stakeholders to implement the 10-year Capital Market Master Plan with the aim of making Nigeria’s capital market one of the world’s deepest and most liquid as well as the largest in Africa by 2025
One of the crucial initiatives of the Plan she said, is to develop a thriving commodities trading ecosystem. Nigeria is well endowed in agricultural, metals and energy commodities.
“In laying down the foundations of our formal commodities market therefore, we have to ensure that the spot commodity market is efficient as we move into the futures market.
“No doubt, this will entail a robust education and enlightenment process, continuous engagement and cooperation among key stakeholders, favourable government policies and strengthening of legal and regulatory frameworks”, the Ag. DG said.
