Africa ( Commonwealth Union ) _ The Securities and Exchange Commission (SEC) has announced a collaboration with the Standard Organisation of Nigeria (SON) to develop standards that will enhance the acceptance of Nigeria’s agricultural commodities in the global market. The aim is to boost foreign exchange earnings and stimulate economic growth.
Lamido Yuguda, the Director-General of the SEC, emphasized Nigeria’s potential for exporting various commodities, which can contribute to job creation and foreign exchange generation. He expressed optimism about the agricultural sector’s significant growth in the near future and highlighted the ongoing development of standards in collaboration with SON.
Yuguda believes that the establishment of these standards will facilitate the export of Nigerian agricultural products, ultimately bolstering the economy. Despite the nation’s abundant agricultural resources, poor standardization has hindered Nigeria’s commodities from gaining recognition and acceptance in international markets, while smaller African countries have enjoyed better reputations.
The SEC is pleased with the government’s support for the commodities sector, as it aligns with the commission’s efforts to develop the commodities market. The SEC has licensed five exchanges and approved the trading and operational framework for various instruments. It collaborates with other organizations such as the National Insurance Commission (NAICOM), Central Bank of Nigeria (CBN), SON, and the Federal Ministry of Solid Minerals and Mines, focusing on capacity building, standard setting, and domestic and international advocacy.
As part of the implementation of the Capital Market Master Plan, the SEC established a Technical Committee on Commodities Trading Ecosystem. The committee’s mandate includes identifying existing framework challenges and developing a roadmap for a vibrant ecosystem. To drive the implementation, a committee comprising stakeholders, including SON, was set up. One of the recommendations in the committee’s report involves developing a grading and standardization system aligned with international best practices.
The SEC has been actively engaging issuers to address their concerns and discourage the persistent delisting of firms from the capital market. In collaboration with the Nigeria Employers Consultative Association (NECA), the SEC established the Securities Issuers Forum to discuss issues faced by issuers and find solutions.
To incentivize companies to list on the exchange, the SEC has introduced measures to encourage listings. The SEC has witnessed strategic listings in recent times and is actively encouraging the diversification of the equities market, particularly through the listing of more companies in sectors such as power generation, telecommunications, and food.
Yuguda emphasized that the development of capital markets facilitates savings, investments, and the allocation of resources to projects with the highest expected returns. The SEC will continue collaborating with market stakeholders to support impactful innovation in the capital market.
While the capital market experienced profit-taking, leading to a decline in capitalization by N7 billion, market breadth closed positive with 32 gainers and 12 losers. The overall sentiment remains cautious, and investors maintain a careful approach to the market.
