March 25, 2020 /6.00PM / Bukola Akinyele for WebTV / Header Image Credit: WebTV
For Nigeria to boost its commodities exchanges and deepen the Agro sector to unlock opportunities, its warehousing capabilities need to be strengthened, Financial Analyst and Agribusiness expert, Mr. Bisi Iyaniwura, disclosed this in a recent interview with WebTV.
According to him as the largest economy in Africa, it was necessary for Nigeria to have a well-structured commodity warehousing finance system, entrenched with the principles of integrity.
Iyaniwura emphasized the need for robust infrastructure that could support warehousing for the commodities exchanges in Nigeria.
Speaking further he said â€œCommodity exchanges could either trade on the features market or trade physically. Most of the trading in Nigeria is physical because we are lacking in some of the infrastructure that is needed to trade features. The infrastructure is driven by technologyâ€.
He described the AFEX commodities exchange as an example of an organisation that is performing well in terms of the Agric value chain and the commodities market.
The Agribusiness expert was optimistic that AFEX with the set of leaders it has can achieve greater strides.
Looking at the policy space, he made a case for an intentional strategy to tap into the complete value chain of the Agricultural landscape in the country.
He believed Agriculture with its immense contribution to the nation's Gross Domestic Product (GDP) should be approached with the viewpoint of driving efficiency. Iyaniwura decried a situation where the sector Agriculture was being treated as an appendage to the broad economy.
The analyst called on the governments at Federal and State levels to explore how they can address the issue of post-harvest handling, which is where the commodities exchange should provide warehousing support.
To improve the activities of the commodities exchanges in Nigeria the Nigeria Economic Summit Group (NESG) in partnership with other stakeholders through its advocacy role has engaged the National Assembly, which has put forward the â€œWarehouse Billâ€.
The Warehouse Bill is a critical legislation that will aid licensing of warehouses and regulation of their activities. Under the legislation Warehouses established will be regulated by the Nigerian Independent Warehouse Regulatory Agency and its Governing Board. It will provide a licensing procedure, rights and obligations of a warehouse operator, process for resolution of disputes and financial provisions