The Securities and Exchange Commission (SEC), says it is ready to partner with the Nigerian Agricultural Insurance Corporation (NAIC), to deepen the nation’s commodities trading ecosystem.
The Director-General, SEC, Lamido Yuguda, was quoted to have said this during a meeting with the management of NAIC, according to a statement yesterday.
Yuguda expressed SEC’s commitment to developing the commodities ecosystem as a potent way forward in Nigeria’s quest for sustainable foreign exchange earnings and economic development.
He added that as part of the implementation of the 10-year Capital Market Master Plan, the Commission constituted a Technical Committee on Commodities Trading Ecosystem, whose mandate is to identify challenges of the existing framework and develop a Roadmap for a vibrant ecosystem.
“A committee comprising 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,” he said.
He assured that SEC was working hard to ensure that agricultural produce meet international specifications for export, hence the need to also work with NAIC to mitigate various risks in the ecosystem when they happen.
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.
“This sector is key to our country’s future. If we can harness it, it will greatly improve the economy of this country. We are therefore willing to also work with NAIC to grow the commodities sector,” he said.
Yuguda noted that said there are markets that require Nigerian commodities but lamented that the only impediment is the lack of standards, which is why some are not being accepted in the international market.
Speaking, NAIC Managing Director, Mrs Folashade Joseph, also expressed the Corporation’s willingness to advance any initiative that will add value to Nigerians and the 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,” she said.
She added that in areas of storage and insurance, the collaboration would be of great benefit to all parties and assured that NAIC is ready to provide its expertise in anything that would add value to the commodities ecosystem.
Also, the Commissioner for Operations at SEC, Dayo Obisan, said enormous opportunities abound in the entire agricultural value chain and if well harnessed, will lead to further economic development.
“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 said.
