The Securities and Exchange Commission (SEC) said it has begun the implementation of the report of its Technical Committee on Commodity Trading Ecosystem.
The SEC’s Acting Executive Commissioner (Operations), Mr. Isyaku Tilde, made this disclosure when a delegation of the Commodity Brokers Association of Nigeria (CBAN), led by the Association’s Registrar, Alhaji saleh Kwaru, visited the Commission in Abuja, on Wednesday.
Tilde, who stood-in for the commission’s Acting Director-General, Mary Utuk, said SEC was ready to partner with the Brokers Association in that regard.
According to Tilde, “The aim of SEC is to have an efficient commodities exchange because right now that sector of the capital market is dormant. Part of the issues that the committee is trying to address is capacity building and public enlightenment campaigns. I believe that part of the things CBAN is doing is capacity building, which is one area where we can collaborate going forward.“
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The implementation is coming from the background of the recommendations of the Nigerian Capital Market Master Plan 2015-2025 for the development of a thriving commodity trading ecosystem.
According to the Committee’s report which published on SEC’s website, one of the recommendations is to build the capacity of stakeholders and the public on commodity exchange in order to bridge the existing knowledge gap.
The trading ecosystem is aimed at deepening the capital market and also increasing the number of product offering with the enhancement of agricultural and solid mineral production and spur economic development.
For an agrarian economy such as Nigeria, with solid mineral deposits and a heavy dependent nation on a single product for its foreign exchange earnings, the trading ecosystem will be necessary to engender the diversification of the nation’s economy.