The Securities and Exchange Commission (SEC) in Nigeria is pushing for more investment, particularly from the private sector, in the commodities trading ecosystem. Director General of the SEC, Lamido Yuguda, recently emphasized this need during the opening of a 32 metric tonne per hour rice mill in Imota, Ikorodu, Lagos State.
Yuguda stated that the capital market is eager to see an increase in private sector investments in areas such as storage facilities and mechanized farming, particularly in commodities such as rice and hibiscus flowers that are in high demand globally. He emphasized the significance of this new investment, calling it a “game-changer” for Lagos State and the entire country.
The SEC DG highlighted the importance of collaborating with the Standards Organization of Nigeria to establish standards for Nigeria’s commodities, making them competitive in the export market. He added that the adoption of these standards by commodities exchanges and other players in the sector would greatly boost the industry.
The SEC established a Technical Committee on the commodities trading ecosystem as part of its implementation of the 10-year Capital Market Master Plan. The committee, made up of various stakeholders including the SON, was tasked with identifying challenges and developing a roadmap for a thriving ecosystem. One of the recommendations in the report was the creation of a grading and standardization system in line with international best practices.
In conclusion, the SEC’s push for more investment in the commodities trading ecosystem and its collaboration with the Standards Organization of Nigeria are expected to bring about significant developments in the sector, including job creation, increased local production, and export competitiveness.
