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SEC To Develop Commodities Trading Ecosystem

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In its avowed determination to further deepen the capital market and have a vibrant commodities exchange, the Securities and Exchange Commission (SEC) is set to hold a roundtable on the commodities Trading Ecosystem.

Acting director-general of SEC, Ms Mary Uduk, said, “The roundtable which is scheduled to hold on October 3, 2019 in Lagos with the theme:‘Building a strong Commodities Trading Ecosystem for InclusiveEconomic Development’ is expected to convene industry experts, policy

makers and thought leaders to have discussions to further develop thecommodities market in Nigeria.”Uduk said the objective of the roundtable is to obtain the buy-in ofpolicy makers and agencies of government and to get perspectives of stakeholders towards encouraging investments and get moreparticipation in the commodities market.According to Uduk, “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.

“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.”

She disclosed that these commodities can be exported, while on the other hand industries can     e set up that will employ a large number of the teeming population, saying that “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 toachieve 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, the nation needs to harness the full potential in the commodities market.”

Uduk noted that the aim of SEC was to have an efficient commodities exchange, saying that right now that sector of the capital market was dormant and that is why the Commission was leading other capital market stakeholders on capacity building and public enlightenment campaigns.

“We have already commenced capacity building for stakeholders and the public on commodities exchange to bridge the current knowledge gap to ensure we reap the benefits of trading in commodities, all these are part of the implementation of the report of the technical committee on commodities trading ecosystem,” she said.

Some of the topics to be discussed at the roundtable include, enabling environment for functional commodities trading system among others.

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