Economy
Commodities Exchanges Will Create Jobs, Improve Living Standards—SEC DG
By Aduragbemi Omiyale
The Director-General of the Securities and Exchange Commission (SEC), Mr Lamido Yuguda, has disclosed that commodities exchanges have the potential to improve the living standards in Nigeria and create jobs for the populace.
The SEC DG made this disclosure on Thursday at a one-day seminar organised by his agency in collaboration with the Standards Organisation of Nigeria (SON) in Kano.
He described commodity exchange as critical to enabling investment diversification, risk management, price discovery and transactional efficiency which will, in turn, facilitate economic development among other benefits.
According to him, the exchanges have the potential to efficiently link commodities to industries thereby creating jobs, improving living standards and unlocking the economic potentials of farming communities, promoting rural development, enhancing financial inclusion of smallholder farmers, and ultimately facilitating economic development, amongst other benefits.
He described the workshop as indeed timely considering the government’s policy shift towards economic diversification and the need to deepen capacity across the agricultural value chain.
Mr Yuguda said a thriving commodities trading ecosystem, with grading and standardization features, would ensure compliance with established grades and standards, eliminate or reduce the proliferation of sub-standard commodities in the markets, and encourage global acceptance of commodities produced in Nigeria, among other benefits.
According to the SEC Boss, the Technical Committee on Commodities Trading Ecosystem had in 2017, developed a Roadmap for the actualization of a vibrant commodities ecosystem. The Committee specifically identified the development of a grading and standardization system that will align with international best practices as an important precursor in achieving vibrancy in the ecosystem.
“I am happy to report that the Ecosystem Roadmap Implementation Committee has been working tirelessly on the development of a grading and standardization system. The initial stage of the development process would concentrate on the delivery of standards for agricultural commodities.
“In this regard, we are working closely with the SON to create awareness for existing agricultural commodities standards, but more essentially to obtain feedback from stakeholders on the standards to be presented for consideration of stakeholders at this Workshop to trigger a review of inadequate standards if and where applicable.”
In addition, Mr Yuguda said the 10- year capital market master plan which is the blueprint for the growth and development of the capital market over the next decade, designates commodities exchanges as critical for enabling investment diversification, risk management, price discovery and transactional efficiency.
He said efficient Commodities Exchanges coupled with a grading and standardization system that will align with international best practices are no doubt critical elements in achieving a thriving Commodities trading value chain.
“Commodities exchanges offer significant value addition by providing a platform that improves confidence and assurance, as trading activities within the platform are conducted in a fair, transparent and efficient manner.
“In addition, commodities purchased through these Exchanges are guaranteed to comply with standards in terms of quality and weight.
“Nigeria strives to achieve a sustainably-diversified economy, food security and sufficiency, there is need for all stakeholders to ensure the effective adoption and enforcement of appropriate standards to establish quality, and reverse the embarrassing rejection of Nigerian-produced agricultural commodities outside Nigeria,” he stated.
The SEC boss assured that the commission remains a strong advocate for a thriving commodities trading ecosystem adding, “believe, and very strongly too, that this is a project of national importance, given that an efficient commodities ecosystem can transform our economy by promoting economic diversification, and export promotion amongst others.”
In his remarks, the DG of SON, Mr Farouk Salim, said the role and importance of commodity markets cannot be overemphasized in connecting both producers and consumers in a centralized liquid marketplace and for the economic growth of the nation.
Mr Salim stated that countries with older and better commodity exchanges have historically gained an economical advantage over others adding that in support of Nigeria’s readiness to key into the global sustainable commodity market, SON is ready to partner in areas where its services and products are needed including; development of new Standards and review of existing ones.
According to him, “Trading in agricultural produce among which are: Wheat, rice, corn, soybeans, maize, groundnut are growing steadily. There is no gainsaying that ‘Without agricultural commodities, the world will starve’. This sector of the commodity market has thus become important in support of the economic diversification policy of the federal government.
“Commodity standards and grades provide a means for measuring levels of quality and value for agricultural commodities. These standards provide a basis for domestic and international trade and promote efficiency in marketing and procurement.
“In connecting buyers and suppliers, the market ensures that the quality of the commodities exchanged is in accordance with the required guidelines which are none other than Standards. This, you will all agree, is largely achievable with compliance to quality requirements specified in each commodity standard.
Mr Salim assured that the SON is committed to ensuring that the primary objective of the commodity exchange to offer fair pricing to the producers and deliver genuine commodities to the consumers is continuously achieved through quality production based on conformity to applicable Standards.
In a message, Governor of Kano State, Mr Abdullahi Ganduje, said the state was at the forefront of enhancing agricultural activities in the state, adding that there was also a need to be able to reach out to the farmers in the languages they can understand to as to understand the importance of the program.
Represented by the Deputy Governor, Mr Nasir Gawuna, the Governor expressed the need for the farmers to be familiar with the standards first before they can be encouraged to use them in the packaging of their products.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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