The Abuja Commodities Exchange formally began operations last month with the listing of a number of agricultural products on the exchange. Although the exchange has been mandated to trade both in agricultural produce and solid minerals, trade on the latter is yet to commence.

The commencement of activities on the floor of the of the exchange signals the end of the prolonged war between the Exchange and the Nigerian Stock Exchange (NSE) based in Lagos over name. The Nigerian Stock Exchange had protested against the idea of creating a parallel stock market which the then Abuja Stock Exchange was to be. Following the heated war between the two bodies, President Olusegun Obasanjo intervened by instructing that the Abuja Stock Exchange be made a commodities exchange-to trade in agricultural produce and solid minerals. This intervention appeared to have settled the bitter rancor between the two institutions.

The Abuja Commodities Exchange, according to experts, has a potential to boost trade in agricultural products and solid minerals and further enhance economic growth especially amongst the vast majority of the populace who engage in one form of agricultural activity or the other to earn a living. The exchange, the experts agree, would create an avenue for businessmen to buy and sell products for export to other countries. Unlike the previous situation where a formal setting for buying and selling of such products was not available, traders now have a forum to trade in these products. Like the NSE, businessmen could simply look up the prices of goods on the internet and instruct their brokers to buy or sell same on their behalf. It is obvious that despite the huge resources that accrue to the country from the sale of crude oil, agriculture still remains the major source of livelihood for a majority of the populace. By implication, any meaningful attempt to fight poverty in the country must take into account the need to enhance the production, di stribution and marketing of agricultural products.

The Abuja Exchange has a potential to facilitate the quick disposal of large quantities of agricultural produce thereby encouraging increased production amongst farmers. The famous groundnut pyramids of Kano, the Cocoa trailers of the South-West and the Palm Oil and Palm kernels and the Rubber that came from the South-East and South-South respectively have all vanished because proper policies have not been put in place to enhance the production, distribution and marketing of these goods. The discovery and subsequent exploration and exportation of crude oil from parts of the country have diverted the attention of both the government and private sector investors from agriculture. The gamble paid off and using the expertise of the members of the team which had advocated the creation of the Abuja Stock Exchange in the first place, and the new commodities exchange was born. Less than a month after it came into operation, the exch ange has already started promoting trade in some products that had not enjoyed the kind of patronage they deserved because of their economic value. For instance, on Tuesday last week, cowpea worth N17.5million was sold the Exchange. A total of 450 tons of cowpea was offered by Davandy Finance and Securities Limited. 350 tons were purchased at N52,000 per ton. Other commodities offered for sale the same day were 70 tons of maize at N34,000 per ton 200 tons of soybeans at N50,000 and another 1 ton of Soybeans at N47,500. Besides promoting trade in products, the Abuja Exchange can be a source of achieving uniform pricing for commodities of the same quality and quantity in all parts of the federation.

Recently, the minister of Commerce, Dr. Aliyu Moddibo Umar promised that the government was going to make efforts to ensure that uniform pricing is achieved in Nigeria. To achieve this, the Exchange would have to play a major role especially in terms of providing the platform for m easuring the standard or acceptable prices for goods. But contrary to the belief held by many that transforming the Abuja Stock Exchange to a commodities market has resolved the stand-off between the two bodies, the crisis appears yet to be over. Not long after the Exchange in Abuja began operation, the NSE in a swift reaction to the news of the commencement of trading issued instructions to all its members asking them to avoid engaging in any dealings with the Abuja Exchange. NSE said that no member or broker-dealer would be allowed to also deal on the Abuja Commodities Exchange and that no securities listed on NSE would be allowed to enjoy dual listing by being listed on the Abuja Commodities Exchange. Ordinarily, these decisions of the NSE need not be of concern to members of the public. However, when the decisions are viewed in the context of recent events and developments, their impact on the economic growth of the country becomes worrisome. For example, the Nigerian capital market is regulated by the Investment and Securities Act [lSA] of 1999 from which the Securities and Exchange Commission draws its powers. The law provides for a multi-exchange environment and if the Investment and Securities Act [ISA] 1999 permits multiple stock exchanges in Nigeria, it becomes worrisome that the NSE is negatively disposed to the idea. While the NSE says it would kick against dual listing of any company's shares on any parallel exchange, it has not opposed the planned dual listing of OANDO on the Johannesburg Stock Exchange in South Africa.

The hallmark of a liberalized economy is competition and that is why most capitalist economies allow parallel exchanges to operate so as to provide investors and brokers with alternatives. The powers to forbid competition in the stock market should rest with the Securities and Exchange Commission (SEC) and not any other body. To enable the agricultural and the solid minerals sectors of the economy grow, the governm ent as well as stakeholders need to support the new initiative. This will no doubt ease the process of trading in large quantities of the goods in question and further enhance the growth of the sectors.