By Francis Akinnodi
The Nigeria Commodities and Futures Exchange (NCFE) has called for a legal framework that would enable commodities to be registered in Nigeria before export.
The Chief Executive Officer, NCFE, Mr Akin Akeredolu-Ale, said this at the weekend in a Akure.
Akeredolu-Ale said the framework would boost transparency and price discovery in the commodities ecosystem.
He also stressed the need for government to initiate policies that would promote commodities exchange in Nigeria and activate the ecosystem.
According to him, Nigerians need to leverage the potential of the ecosystem, which is capable of contributing up to 70 per cent to the nation’s Gross Domestic Product (GDP).
“Nigeria must have a full structure in place for commodities exchanges to operate optimally.
“It is like a green field in Nigeria. A lot of participants are used to trading equity and fixed income securities.”
According to him, “We have commenced proof of concept trade as preparation to full trade. Commodities contribute about 70 per cent to Nigeria’s Gross Domestic Product (GDP). The industry generates 80 per cent employment.
“The focus of foreign countries on Nigeria and Africa is commodities and most of the time not infrastructure.”
He said: “If the commodities exchange is prioritised in Nigeria, it would accelerate the growth of the manufacturing sector and enhance food security.
“How much of our sovereign investments go into the commodities space. There should be a paradigm shift between public sector financing and enabling private sector in the commodities exchange,” he said.
He added that the Federal Government policies were very important in driving the commodities exchange and the diversification agenda.
“Our other areas of focus for development are non-interest backed commodity instruments and other sources of finance instruments.”