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.
Economy
Crypto.com to Delist Tether’s USDT, Others January 31
By Aduragbemi Omiyale
On January 31, 2025, the stablecoin of Tether, USDT, will be delisted from one of the world’s largest cryptocurrency exchanges, Crypto.com
Business Post gathered that eight other tokens would also be yanked off the platform by Friday, with deposits for the affected digital coins disabled after the delisting.
The other tokens are Crypto.com Staked ETH, Crypto.com Staked SOL, PayPal USD, Wrapped Bitcoin, PAX Gold, PAX Dollar, XSGD, and DAI.
The decision to remove these coins from its trading platform is to comply with the Markets in Crypto-Assets Regulations (MiCA).
On January 17, 2025, the European Securities and Markets Authority (ESMA) asked exchanges to drop non-compliant tokens, stressing the need for crypto asset service providers (CASPs) to align their services in compliance with the MiCA regulations.
However, holders of these affected coins will have until March 31 to convert their assets to MiCA-compliant alternatives.
If this is not done, the crypto exchange will automatically convert assets to MiCA-approved stablecoins or assets.
Tether’s USDT is one of the most popular stablecoins in the world but in recent times, it has started to lose its market share because of the regulatory uncertainty in Europe, particularly due to MiCA, going from about $150 billion to $139 billion.
The new regulations in the EU require 60 per cent of stablecoin reserves in the region to be in Euros, which Tether’s chief executive, Mr Paolo Ardoino, said threatens the future of stablecoins.
Economy
NGX RegCo, EFCC, to Strengthen Partnership on Market Integrity
By Aduragbemi Omiyale
To boost market surveillance and combat financial crimes in Nigeria’s increasingly digitalized capital market, the NGX Regulation Limited (NGX RegCo) and the Economic and Financial Crimes Commission (EFCC) have called for enhanced partnership.
This call was made during a meeting between the two organisations at the EFCC’s headquarters in Abuja on Tuesday, January 28, 2025.
The chief executive of NGX RegCo, the independent regulation subsidiary of NGX Group Plc, Mr Olufemi Shobanjo, informed the head of the EFCC, Mr Ola Olukoyede, that, “The digitalization of our markets has brought new challenges, necessitating a more robust collaborative approach.”
“While our 2013 MoU established initial cooperation parameters, the substantial market growth in 2024 demands an enhanced partnership framework.
“As a frontline regulator, we recognize the EFCC’s crucial role in providing enforcement support and specialized expertise to combat market abuse and protect investor interests,” he added.
Mr Shobanjo emphasized NGX RegCo’s dedication to maintaining market integrity and expressed confidence that reinforced collaboration with the EFCC would strengthen investor protection mechanisms.
Responding, Mr Olukoyede commended the desire to strengthen the existing relationship between the two agencies and assured that the commission was ready and willing to collaborate.
“I know you are also concerned with regulatory compliance because the issue of compliance is a key issue. It is part of our mandate to enforce compliance.
“Under my administration, we have strengthened our bond with different regulatory bodies. Let’s see how we can have a desk where we can work better and attend to you. I have a special interest in the capital market in respect of the abuse of assets and trades.
“We will try to review the MoU, make our observations in line with the relevant laws and regulations, and communicate our views to you. We pledge our commitment to this,” he said.
The strategic dialogue highlighted both organizations’ shared commitment to fostering a secure, transparent, and globally competitive Nigerian capital market that instils investor confidence and promotes sustainable economic growth.
Economy
Risevest Reaffirms Operational Compliance as SEC Raises Fresh Alarm
By Adedapo Adesanya
Risevest, a digital investment platform, has once again reaffirmed its committment to regulatory transparency and compliance as the Nigerian Securities and Exchange Commission (SEC) raised another red flag about the activities of the firm.
The SEC in another statement on Tuesday notified the public that Risevest Technologies Limited is not registered by it to operate in any capacity in the Nigerian capital market.
“Accordingly, the public is advised to refrain from engaging with Risevest Technologies Limited or any of its representatives in respect of any business pertaining or relating to the Nigerian capital market,” the regulator shared on its X platform.
This follows an earlier caution on Sunday, warning Nigerians against engaging in investment transactions with two unregistered platforms—Risevest Cooperative Multipurpose Society Limited and Stecs Multipurpose Cooperative Society, commonly referred to as Stecs.
SEC warned that engaging with unregistered and unregulated entities in the capital market exposes investors to significant risks, including fraud and the potential loss of funds.
Risevest following the initial warning said it was engaging with the regulator to straighten out the issue.
Now, Risevest in its latest communication, admitted that some of the regulatory frameworks it adopted, particularly for its cooperative subsidiary, needed to evolve to meet the expectations of the commission.
“As we’ve grown, we’ve realized that some of the regulatory frameworks we initially adopted, particularly for our Risevest Cooperative subsidiary, need to evolve to meet the expectations of the SEC. This is a natural part of our journey as we scale, and we are taking additional action steps to close any remaining compliance gaps across all our subsidiaries,” the company said.
The firm reiterated its commitment to supporting the SEC in its efforts to protect investors and ensure innovation aligns with robust investor safeguards.
“We want to reassure you that our investments and operations remain secure and unaffected by this process, as they are delivered through regulated third parties. Your trust is of utmost importance to us, and we see this as an opportunity to raise the bar even higher for compliance and operational excellence,” it added.
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