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Tuesday, March 02, 2021 / 5:45PM /
Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV
The Central Bank's N50bn intervention in the Nigerian Commodities
Exchange has been described as counter-productive to market growth. Mr. Bisi
Iyaniwura an Agri-Business expert said this in a recent discussion on the "CBN
Intervention in the Nigerian Commodities Exchange".
According to him, the intervention would not support a competitive
commodities exchange in Nigeria, which is vital for achieving growth from the
economy's Non-Oil sector.
He described the approach by the CBN as uncalled for and a wasteful
venture that will stifle entrepreneurship, innovation, and creativity in the
commodities market.
Iyaniwura advised the Central Bank to sell its shares in the NCX and
allow other key stakeholders the Federal Ministry of Industries, Trade and
Investments, the Federal Ministry of Agriculture, and Federal Ministry of
Finance, to drive the process with the regulatory support of the Securities and
Exchange Commission (SEC).
"Apart from the NCX based in Abuja, there is the Lagos Commodities and
Futures Exchange, LCFE, and the AFEX Commodities exchange who are all key
players in the ecosystem. This is why we need a level-playing field that
encourages investments" he said
The market professional who has been involved in developing the
framework for Nigeria's Commodities trading stressed that the market thrives on
a comprehensive and efficient receipt and warrant system.
He added that the system provides opportunities for trading in futures
and derivatives, which requires a vigorous regulatory mechanism to incentivize
the private sector.
Speaking on the agric sector GDP performance in 2020, which recorded
growth in crop production, livestock, and forestry, he said the COVID 19
pandemic and the herdsmen/farmer clashes adversely affected the agri-business
segment.
The effects of the twin issues (COVID 19, Farmer/Herder clashes) he
stated on food security in the country will be dire in 2021, as he decried the
rising cases of poverty and diminishing purchasing power of Nigerians.
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