Senate tasks stakeholders on strengthening commodities exchange

The Senate has tasked relevant stakeholders in the Capital Market to strive hard to strengthen the commodities exchange toward actualising its full potential.

Sen. Osita Izunaso, the Chairman, Senate Committee on Capital Market, said this at a workshop for members of the committee, with the theme “On Infrastructure Financing Development of the Commodities Ecosystem through Commodities Exchanges” in Abuja on Sunday.

He said that executive and the legislature must work in harmony to ensure that commodities exchange was strengthened in line with the global best practices.

Izunaso said that the workshop was aimed at positioning the community exchange toward ensuring food security in the country as well as enhance foreign exchange earnings.

“We discover that people are talking about money market, capital market. Nobody is dwelling on commodity. So that is why we have to partner with Lagos Commodities and Futures Exchange to bring the story nearer home.

“There must be need for us to ensure that all the export commodities in Nigeria should pass through the commodity exchange as a way of getting revenue for the country.

“Commodities exchanges are game-changers. They enable investment diversification, manage risk, ensure fair pricing and streamline transactions.

“To boost Nigeria’s competitiveness, we need a thriving commodities trading ecosystem,” he said.
Izunaso added:“Recent global events highlight the urgent need to diversify our economy. Prioritising and accelerating the development of non-oil commodities is crucial, especially to diversify foreign exchange sources.”

He said that the Lagos Commodities Exchange had recorded some major achievements lately.
recorded an upswing

“This demonstrates the potential of the sector. Commodities Exchanges are a path to progress.There is a clear consensus,” he said.

He also said that for Nigeria to overcome its challenges, economic diversification was essential adding that commodities exchanges could play a vital role in achieving the goals of job creation and economic growth.

The lawmaker said that the Senate through legislation, would ensure that there were adequate legal frameworks for commodity exchanges, warehouses and financing.

Also speaking, the Minister of State for Agriculture and Food Security, Sen. Sabi Abdullahi said the ministry had been working to reverse food inflation and stem food crisis in the country.

He said that Nigeria had about 73 million hectares of arable land out of which only about 33 hectares were being cultivated.

“With this, our productivity is still low. I believe there is a lot to be done to raise the productivity of farmers.”

He said that to increase productivity, there was the need to improve on irrigation capabilities through dry season farming.

“Our findings show that farmers are finding it difficult to fuel irrigation facilities.

“We are suggesting that there are solar-powered irrigation pumps that members of the national assembly can use as part of their constituency programmes.

“So as to empower their farmers who are involved in dry season farming so that together, we can increase our production and improve the volume of food available, thereby reducing the impact of food inflation and of course, guaranteeing food security for our citizens,” he said.