By Aduragbemi Omiyale
A sensitisation workshop to discuss agricultural commodity standards in Nigeria will begin on Monday, November 8 and end on November 9, 2021, at Protea Hotel in Ikeja, Lagos.
The event is organised by the Securities and Exchange Commission (SEC) and the Standards Organisation of Nigeria (SON).
The commodities standards sensitisation seminar is aimed to enhance the nation’s commodities trading ecosystem and make it attractive to investors as critical stakeholders like processors, farmer groups, exporters, farmer co-operatives, merchants/off-takers as well as agricultural extension officers will brainstorm on how to make things better.
The Commodities Trading Ecosystem Report had identified standards and grading as essential to determining the quality and value of commodities. The effective use of these standards is guaranteed to eliminate substandard agricultural commodities and enhance domestic and international trade in commodities originating from Nigeria.
The Commodities Trading Ecosystem Implementation Committee comprising key stakeholders has been working on the development of grading and standardization system in line with international best practice and this informed the event.
Recently, the Director-General of the SEC, Mr Lamido Yuguda, stated that as part of its implementation of the 10-year Capital Market Master Plan, the commission constituted a Technical Committee on commodities trading ecosystem whose mandate was to identify challenges of the existing framework and develop a roadmap for a vibrant ecosystem.
“A committee comprising various stakeholders including the SON was set up to drive the implementation of the report. One of the recommendations in the report identified the development of grading and standardisation system in line with international best practice,” he said.
Mr Yuguda stated that it is globally recognised that a unique feature of a commodities exchange is the standardisation of the commodities traded on its platform.
“However, the determination of these grades and standards is dependent upon approved local standards which should take into cognisance internationally accepted standards. Imbibing international standards for export commodities cannot be compromised if the exchanges have to play a pivotal role in export promotion,” he said.
He noted that the establishment of relevant standards would be transformational for the Nigerian commodities trading ecosystem.
“Standards provide consumers with an assurance of fitness of purpose, processors with commodities specifications, and serves as a reference point against which features of commodities can be compared.
“Other benefits include an increase in value to smallholder farmers due to the premium paid on high-quality commodities, reduction of post-harvest losses due to standard post-harvest handling, packaging and storage, as well as increased employment opportunities through the setup of warehouses and assaying companies to provide quality assurance services,” he said.
On his part, the DG of SON, Mr Farouk Salim, said the agency was excited to collaborate with the SEC as it seeks to develop the capital market in Nigeria and the Nigerian economy at large.
“We are committed to helping our people especially the farmers and supporting them to attain food sufficiency. If there is standardisation, the banks will be willing to finance the farmers and the commodities can be exported for the much needed foreign exchange to boost our economy,” he said.
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