SEC, NAIC partner on strengthening commodities trading

Securities and Exchange Commission (SEC) has announced its readiness to partner with the Nigerian Agricultural Insurance Corporation (NAIC) to deepen the commodities trading ecosystem.

Director-General of SEC, Mr. Lamido Yuguda, stated this during a meeting with the management of NAIC, according to a statement by the commission.

Yuguda said the commission is committed to developing the commodities ecosystem as a potent way forward in Nigeria’s quest for sustainable foreign exchange earnings and economic development.

He said the commission has constituted a technical committee, comprising of Standard Organisation of Nigeria and other stakeholders on commodities trading ecosystem with a mandate to identify challenges of the existing framework and develop a roadmap for a vibrant ecosystem.

One of the recommendations in the report identified the development of grading and standardisation system in line with international best practice. “We are therefore willing to also work with NAIC to grow the commodities sector,” he said.

The SEC DG said there are external markets that need the commodities that are produced in Nigeria but lamented that the only impediment at the moment is lack of standards which he said is the reason some of the commodities are not being accepted in the international market.

He assured that SEC is working hard to ensure that agricultural produce meet international specifications for export hence the need to also work with NAIC in a bid to be able to mitigate various risks in the ecosystem when they happen adding, “This sector is key to our country’s future. If we can harness it, it will greatly improve the economy of this country,” Yuguda acknowledged.

In her remarks, managing director of NAIC Mrs Folashade Joseph, said her organisation is willing and available to push forward any initiative that will add value to the population and the nation’s economy.

“It is a privilege to do this, as things begin to evolve, we try to push forward what will add value to the population. Our focus is on commodities. There are various evolving issues during the course of our business as insurers because we manage across the value chain”.

The NAIC MD added that in areas of storage and insurance issues, the collaboration will be of great benefit to all parties involved and assured that NAIC is ready to provide their expertise in anything that will add value to the commodities ecosystem.