Participants at the International Conference on the Nigerian Commodities Market (ICNCM 2020) has urged the Federal Government to create incentives to encourage the trading of commodities through the exchange.
The stakeholders at the end of the 2-day conference in Abuja on Tuesday said this would impact positively on the commodity ecosystem.
A communiqué issued at the end of the conference said measures such as provision of high quality seedlings to farmers is critical to boost the quality of harvest and in the long run increase liquidity and competitiveness in the commodity market.
The participants identified access to long-term funds through the Nigerian capital market as critical towards the holistic development of the Agricultural sector.
The added that “Discourse should therefore revolve around how the capital market could create long term funding for Agriculture and Agri- businesses”.
They agreed that Nigeria must decisively address the challenges across the entire gamut of the agriculture value chain in terms of access to finance by farmers, aggregation of smallholder farmers, storage, warehousing and transportation, establishment of efficient irrigation mechanisms to ensure year-round farming, availability of effective de-risking frameworks and the introduction of modern scientific solutions as well as cutting-edge equipment for mechanized farming.
The Securities and Exchange Commission (SEC) was urged to remain an impartial enabler and promoter, providing a framework for exchanges, institutions and participants in the commodities ecosystem to thrive.
According to the communiqué, “Stakeholders need to ensure efficiency in the commodities ecosystem for securitization to be successful. This could be achieved by ensuring gaps in the value chain are addressed and responsibility to addressing these gaps taken up by appropriate stakeholders.
“Nigeria must begin to adjust to the reality of the emergence of digital commodity exchanges that trade digital assets. Adaptable technology for trading of commodities that addresses needs of millennials should also be developed”.
In her closing remarks, Acting Director General of the SEC, Ms. Mary Uduk commended the participants for a successful conference, noting that one of the key initiatives of the 10 year Capital Market Master Plan is the development of a thriving commodities trading ecosystem as part of the capital market’s contribution to the national economy.
According to her, while it is clear that Nigeria is well endowed with agricultural, metals and energy commodities, the nation’s potentials in these areas are unrealised.