In an effort to further develop the commodities trading ecosystem and produce foreign exchange for the nation, the Securities and Exchange Commission (SEC) has stated that it is willing to collaborate with the Nigerian Agricultural Insurance Corporation (NAIC).
In a meeting with NAIC management over the weekend in Abuja, SEC Director-General Lamido Yuguda reaffirmed the commission’s commitment to building the commodities ecosystem as a key step in Nigeria’s pursuit for long-term foreign exchange profits and economic growth.
He claims that “in the past few months, this has been exacerbated by low oil production and oil theft in the country. This has often resulted in foreign exchange shortages and balance-of-payment problems.”
According to him, the commission established a technical committee on the commodities trading ecosystem as part of the 10-year Capital Market Master Plan, with the aim of identifying problems with the current system and creating a road map for a thriving ecosystem.
“A committee composed of various stakeholders including the SON was set up to drive the implementation of the report. One of the recommendations in the report identified the development of grading and standardisation systems in line with international best practice. We are therefore willing to also work with NAIC to grow the commodities sector.”
According to Yuguda, the SEC and NAIC share a lot of similarities because both organizations are government organizations trying to expand the commodities sector of the economy.
According to Yuguda, “The SEC has been doing a lot of things in the commodities sector and the role of NAIC in this sector cannot be over emphasised and based on that, we would like to explore areas of collaboration to see how far we can help grow that sector together.”
The SEC DG acknowledged that there are customers for the goods made in Nigeria, but bemoaned the fact that the sole barrier at the time is a dearth of standards, which prevents some of the goods from currently being sold on the global market.
In order to be able to be able to minimize various risks in the ecosystem when they occur, he guaranteed that the SEC is working hard to ensure that agricultural products satisfy international criteria for export. Therefore, the need to also engage with NAIC is necessary, he added, “This sector is key to our country’s future. If we can harness it, it will greatly improve the economy of this country.”
Huge prospects abound throughout the whole agricultural value chain, according to Dayo Obisan, Executive Commissioner Operations of the SEC. If properly tapped into, these opportunities might propel the growth of the country’s economy.
“There have been a couple of developments in the commodities side, the entire value chain is quite large. The farmers want someone to take up the crops, even local companies in Nigeria can do that. They need quality seeds as well as the funds to buy them. If the sector is not de-risked, it will be difficult to attract investors”, Obisan added.
The NAIC’s Managing Director, Mrs. Folashade Joseph, declared that her organization is ready and eager to advance any idea that will benefit the populace and the country’s economy.
“It is a privilege to do this, as things begin to evolve, we try to push forward what will add value to the population. Our focus is on commodities. There are various evolving issues during the course of our business as insurers because we manage across the value chain”.
