Finance

Forex scarcity: SEC, NAIC to deepen commodities trading

CBN vows to tackle forex pressure, raises lending rate

The Securities and Exchange Commission on Sunday expressed its readiness to partner with the Nigerian Agricultural Insurance Corporation to deepen the commodities trading ecosystem and boost forex earnings.

According to a statement issued on Sunday, the Director-General, SEC, Mr Lamido Yuguda, stated this during a meeting with the management of NAIC in Abuja.

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

He said, “In the past few months, this has been exacerbated by low oil production and oil theft in the country. This has often resulted in foreign exchange shortages and balance-of-payment problems.

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The commission as part of its implementation of the 10-year Capital Market Master Plan, constituted a technical committee on commodities trading ecosystem with a mandate was to identify challenges of the existing framework, and develop a roadmap for a vibrant ecosystem, he said.

He stated, “A committee comprising of various stakeholders including the SON was set up to drive the implementation of the report. 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.”

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Yuguda added, “The SEC has been doing a lot of things in the commodities sector and the role of NAIC in this sector cannot be over emphasised and based on that, we would like to explore areas of collaboration to see how far we can help grow that sector together.”

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In her remarks, the Managing Director, NAIC, Mrs Folashade Joseph, stated that her organisation was willing and available for any initiative that would add value to the population and the nation’s economy.

She said, “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.”

Punch

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