The Securities and Exchange Commission (SEC) of Nigeria, led by Director General Lamido Yuguda, announced a collaboration with the Standards Organization of Nigeria (SON) to develop standards for commodities, aiming to enhance exports and economic growth.
Speaking in Lagos, Yuguda emphasized that Nigeria’s abundant agricultural and mineral resources could drive job creation and foreign exchange earnings if standardized for international markets.
Purpose of Collaboration
Yuguda stated, “In its desire to ensure that agricultural produce is of exportable standards and quality, the Commission is collaborating with the Standards Organization of Nigeria to develop standards for commodities.”
He noted that these standards have been well-received in nearby markets, paving the way for broader international exports.
The initiative aligns with the new government’s support for the commodities sector, which Yuguda believes will amplify the SEC’s efforts.
Current Challenges
Nigeria’s agricultural products, including high-quality fruits, are often rejected internationally due to a lack of standardization.
Yuguda highlighted, “We are a very good agricultural nation, and we have a lot of resources right now most of them are sold in local markets without any form of standards.”
Similarly, the mineral sector faces issues with artisanal mining, necessitating collaboration with state governments and the Ministry of Solid Minerals to ensure licensed, sustainable practices.
Broader Efforts
The SEC has licensed five exchanges and approved trading frameworks for various instruments, working with the National Insurance Commission (NAICOM), Central Bank of Nigeria (CBN), SON, and the Federal Ministry of Solid Minerals and Mines.
These efforts focus on capacity building, standard-setting, and domestic and international advocacy to develop the commodities sector.
Capital Market Master Plan
As part of its Capital Market Master Plan, the SEC established a Technical Committee on Commodities Trading Ecosystem, including SON and other stakeholders.
The committee’s mandate is to identify challenges in the existing framework and develop a roadmap for a vibrant ecosystem.
One key recommendation is the development of a grading and standardization system aligned with international best practices.
Economic Outlook
Yuguda expressed optimism, stating, “We expect the agricultural sector to grow significantly shortly.” The collaboration aims to position Nigeria to compete globally, leveraging its agricultural and mineral resources to boost the economy.
