22 February 2013

Nigeria: FG Invites Ethiopia, World Bank to Restructure Abuja Commodities Exchange

The Federal Government has invited experts from Ethiopia Commodities Exchange and the World Bank to assist in the restructuring of Abuja Securities and Commodities Exchange (ASCE).

It will be recalled that the White Paper of Odife report gave birth to the Abuja stock exchange. However, pressure from some quarters that the nation should not have two exchanges in Nigeria gave way to the establishment of the Commodity Exchange from the initial Abuja Stock Exchange.

The Minister of Trade and Investment, Mr. OlusegunAganga, who disclosed this during the week, said the revitalisation of ASCEwill help local farmers to make more income from their farm produces.

"In order to achieve this, the ministry brought in experts from the Ethiopia Commodities Exchange and also sought the support of the World Bank. They came in and looked at what we have, and then made proposals for which the ministry had set up a committee known as the Technical Working Group comprising executives of the Commodities Brokers Association of Nigeria (CBAN)," said Aganga..

The Managing Director, Abuja Securities and Commodities Exchange, Mr.YusufAbdulraman, stated that the revitalisation project of ASCE must go on, but in order to get the full support and buy-in of the private sector and ensure adequate funding for the project.

"So, Nigeria will soon have a commodities exchange which is predominantly financed by the private sector," he affirmed.

However, Nigerian Association of Chambers of Commerce, Industry, Mines AND Agriculture (NACCIMA), said for the Commodities Exchange to work like their counterparts around the world, government should play the following roles: "Promulgation of decrees to give legal backing to the bye-laws of the exchange. The bye-laws must be properly discussed, canvassed and understood by the interest groups.

Taking a small (about 25 percent) equity share of the Commodity Exchange Clearing Banks (CECB) through development finance institutions like the Bank of Industry (BOI).

Speaking through its Director General, Mr. John Isemede, NACCIMA said there is need for government to also set up the Commodity Exchange Commission as the apex regulatory body of the exchanges to be midwife by Securities and Exchange Commission (SEC) which is to register and the supervise the brokers can operate here.

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