The Securities and Exchange Commission (SEC) works with the Standards Organization of Nigeria (SON) to ensure faster approval and publication of standards relevant to the commodity trading ecosystem.
This disclosure was made by the CEO of the SEC, Mr. Lamido Yuguda, during a working visit to SON management in Abuja recently.
According to Yuguda, the commission set up, as part of its implementation of the 10-year capital market master plan, a technical committee on the commodity trading ecosystem which was mandated to identify the challenges of the existing framework and develop a road for a dynamic ecosystem.
What they say
According to Mr. Lamido Yuguda, DG of the SEC:
- “The rapid establishment of relevant standards would be a transformation for the Nigerian commodity trading ecosystem. Standards provide consumers with assurance of suitability for use, processors with product specifications, and serve as a benchmark against which product characteristics can be compared.
- “The commission is committed to engaging relevant stakeholders in the commodity trading ecosystem to provide the necessary support for SON to achieve expedited approval and publication of commodity standards.
- “Standard setting is a project of national significance and the SEC and other stakeholders will work with SON to achieve the goal and, by extension, national food security and self-reliance. “
According to the CEO of SON, Mallam Farouk Salim:
- “If we join forces to improve standardization, our farmers and processors would be able to attract finance, export high-quality products and attract much-needed foreign exchange.
- “The impending implementation of the African Continental Free Trade Agreement in January 2021 requires stakeholders in Nigeria to join forces to protect local manufacturers from unfair competition from importers of lower quality and cheaper products. “
Why it matters
- The symbiotic relationship between SON and SEC is critical enough to protect the nascent economy as key regulators.
- The benefit of this vital collaboration would translate into increased value for smallholder farmers due to the premium paid on high quality produce, reduced post harvest losses, quality packaging and storage, as well as increased employment opportunities through the establishment of warehouses and analysis companies to provide quality assurance services.
- Other benefits include global acceptance of commodities produced in Nigeria for export, resulting in increased foreign exchange earnings, increased number of processing plants in Nigeria due to better quality of raw materials and the overall growth of the Nigerian economy.