The Director-General of the Securities and Exchange Commission (SEC) Nigeria, Mr. Lamido Yuguda, has hinted of plans by the capital market regulatory commission to collaborate with the Nigerian Agricultural Insurance Corporation (NAIC) in a bid to further deepen the commodities trading ecosystem.
Yuguda, who made this disclosure during the commission team’s meeting with the management of NAIC at the weekend in Abuja, explained that the planned collaboration with the corporation was based on the SEC’s commitment to developing the commodities ecosystem as a means of boosting Nigeria’s foreign exchange earnings and economic development.
He recalled that in the past few months, Nigeria’s dwindling foreign exchange earnings had been exacerbated by low oil production and oil theft in the country, thereby resulting in balance of payment problems for the country.
The Director-General also pointed out that the commission, as part of its implementation of the 10-year Capital Market Master Plan, had inaugurated a Technical Committee on Commodities Trading Ecosystem with the mandate of identifying challenges of the existing framework and charting a Roadmap for a vibrant ecosystem.
Yuguda said: “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 standardization system in line with international best practice. We are, therefore, willing to also work with NAIC to grow the commodities sector.”
The investment expert maintained that the SEC and NAIC had a lot of things in common as both organizations are government agencies working towards the growth of the commodities sector of the economy.
Speaking on the collaborative plan, the NAIC Managing Director, Mrs. Folashade Joseph, expressed the readiness of the corporation to support any initiative that will add value to agriculture sector performance, the citizenry 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.”
The agriculture insurance expert expressed optimism that the collaboration would be of great benefit to both agencies in areas of storage and insurance issues, promising that the corporation is ready to provide expertise in anything that will add value to the commodities ecosystem.
