By Yinka Ezun
Nigeria Commodity Exchange has assured Nigerians that it has enough commodities in reserve in all its storage facilities all over the country.
This disclosure was made by the Managing Director of the Exchange, Mrs Zaheera Baba-Ari in her remark after receiving the Public Servant of the year award from the Commerce and Industry Correspondents Association of Nigeria,CICAN, at its 2021 workshop and awards.
Represented by the Director of Media and Public Enlightenment of the Exchabge, Mr Chris Echikwu, the NCX boss assured Organized Private Sector (OPS) of adequate commodities for their factories.
While calling on the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) to partner with the exchange especially now where the forex scarcity is affecting sourcing raw materials abroad.
“You don’t need to stress yourself because we have enough in this country” she stressed.
Earlier, in his Keynote address the Chief Executive Officer, Center for Promotion of Private Enterprises.Dr. Muda Yusuf on the theme of the workshop, ” Impact of Forex crisis on the Real sector & MSMEs ” lamented the effects of forex crisis in the manufacturing sector.
Dr Yusuf, who was the immediate past Director General of Lagos Chamber of Commerce and Industry, (LCCI) however recognized agriculture as the major beneficiary of the forex crisis.
At the event which attracted economic experts and captains of industry in the manufacturing ,SMEs , financial institutions in the country. “Developments in the Foreign exchange aspect of the economy and its impart on the local industries took the center stage”
Panelists including Igwe Chris Oranus, Mr Malinson Afam Ukatu, Mr George Onofowokan,
Director of Tree Crops,Ministry of Agriculture, Ogun State,Mr James Oyesola who represented Dr Odedina at the event and the Director General of NACCIMA , Ambassador Ayoola Olukanni, were on hand to dissect issues around the theme of the workshop.
Highlight of the event was the award ceremony, with nine awards in different categories given to out, including the award for Advocacy for Nigeria’s Real Sector presented to Manufacturers Association of Nigeria (MAN), award for Great Strides in Wires and Cables Manufacturing in Nigeria Presented to Mr. George Onafowokan MD/ CEO Coleman Wires and Cables, award for Pioneering Tiles Production in Nigeria presented to Malinson Afam Ukatu, MD/ CEO, NISPO.,award For Sustainable Partnership with CICAN, presented to Nigeria Association Chambers of Commerce, Industry, Mines and Agriculture ( NACCIMA), award for Agricultural Performer of the Year presented to Dr. Adeola Odedina, Commissioner for Agriculture Ogun State.
Others include, award for Great Manufacturing Feat in Nigeria, presented to Igwe Chris Oranu , MD/ CEO, Kris Oranu group of companies, award for Standards Ambassador of the Decade, presented to Engr. Bede Egwu Obayi , Director, National Metrology Institute, SON, award for Public Officer of the Year, presented to Mrs. Zaheera Baba-ARI, MD/ CEO Nigeria Commodities Exchange and award for Sustaining Focus on Standards, presented to Standards Organization of Nigeria (SON).
LCFE seeks legal framework to strengthen commodities ecosystem
The Lagos Commodities and Futures Exchange (LCFE) has called for a legal framework that will enable commodities to be registered in Nigeria before export.
The Chief Executive Officer, LCFE, Mr Akin Akeredolu-Ale, said this at the review of commodities ecosystem and prognosis for 2022 on Friday in Lagos.
Akeredolu-Ale said the framework would boost transparency and price discovery in the commodities ecosystem.
He also stressed the need for government to initiate policies that would promote commodities exchange in Nigeria and activate the ecosystem.
According to him, Nigerians need to leverage the potential of the ecosystem, which is capable of contributing up to 70 per cent to the nation’s Gross Domestic Product (GDP).
“Nigeria must have a full structure in place for commodities exchanges to operate optimally.
“It is like a green field in Nigeria. A lot of participants are used to trading equity and fixed income securities,”he said.
He added that LCFE’s outlook for 2022 was more on advocacy to encourage trading, particularly the teaming youth population.
“We have commenced proof of concept trade as preparation to full trade. Commodities contribute about 70 per cent to Nigeria’s Gross Domestic Product (GDP). The industry generates 80 per cent employment.
“The focus of foreign countries on Nigeria and Africa is commodities and most of the time not infrastructure,” said Akeredolu-Ale.
According to him, if the commodities exchange is prioritised in Nigeria, it will accelerate the growth of the manufacturing sector and enhance food security.
He said: “How much of our sovereign investments go into the commodities space. There should be a paradigm shift between public sector financing and enabling private sector in the commodities exchange.”
He added that the Federal Government policies were very important in driving the commodities exchange and the diversification agenda.
Akeredolu-Ale said the company had invested heavily in technology to drive commodities ecosystem in the country.
“In 2022, we shall partner with the media to embark on aggressive financial literacy that involves schools, religious groups and other platforms.
“We shall engage SEC, federal, state and local government agencies.
“Our other areas of focus for development are non-interest backed commodity instruments and other sources of finance instruments,” said Akeredolu-Ale.
He explained that LCFE was already working on guidelines and frameworks for commodities notes, listing of Exchange Traded Funds (ETF) and logistics investments, stakeholders’ engagement and strategic partnerships.
On how to create more awareness on the existence of the securities exchange, Akeredolu-Ale said the exchange had concluded arrangement to roll out youths’ enlightenment programme that would help expose the millenials to the rudiments of the commodities exchange in 2022.
He said the exchange was targeting up to 10 million youths for the initiative.
He added that the exchange would also build capacity of trade dealing members to make it easy for people to operate when ever they wanted to engage in trading.
Akeredolu-Ale added that the LCFE would partner the Chartered Institute of Stockbrokers (CIS) to onboard 2,500 stockbrokers in 2022 to drive millennials into the commodities exchange ecosystem.
He said the exchange would invest heavily on cold chain and logistics, noting that without cold chain, the commodities exchange ecosystem could not be derisked.
Earlier in his address, the Head of Operations, Dr Allwell Umunnaehila, highlighted some of the milestones of the LCFE within its short period of existence.
Umunnaehila listed some of the achievements as bringing on board some dealing member firms, settlement banks, signing of Service Level Agreement (SLA) with NIBSS, and collateral managers, among others.
