LAGOS, Nigeria (VOICE OF NAIJA )-The Senate committee on Capital Market, said the commodities exchanges have enormous potential of generating revenue and job creation.
The Chairman of the committee, Sen. Osita Izunaso, said it’s not just talking about money but it’s about diversifying the economy by leveraging on the capital market through non-oil exports.
He said this at the workshop organised for the members of the committee, titled “On Infrastructure Financing Development of the Commodities Ecosystem through Commodities Exchanges” in Abuja on Sunday.
He said that executive and the legislature must work in harmony to ensure that commodities exchange was strengthened in line with the global best practices.
Sen. Osita added that the goal of the workshop is to enhance foreign exchange earnings by tasking relevant stakeholders in the Capital Market.
“We discover that people are talking about money market, capital market.
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“Nobody is dwelling on commodity. So that is why we have to partner with Lagos Commodities and Futures Exchange to bring the story nearer home.
“There must be need for us to ensure that all the export commodities in Nigeria should pass through the commodity exchange as a way of getting revenue for the country.
“Commodities exchanges are game-changers. They enable investment diversification, manage risk, ensure fair pricing and streamline transactions.
“To boost Nigeria’s competitiveness, we need a thriving commodities trading ecosystem,” he said.
He noted that recent global events highlight the urgent need to diversify the economy.
He said prioritising and accelerating the development of non-oil commodities is crucial, especially to diversify foreign exchange sources.
Using Lagos State as an example he said Lagos commodities exchange had recorded an upswing lately.
This he said demonstrates the potential of the sector.
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Noting that commodities exchanges are a path to progress he said there is a clear consensus.
He also said that for Nigeria to overcome its challenges, economic diversification was essential adding that commodities exchanges could play a vital role in achieving the goals of job creation and economic growth.
He added that commodities exchanges could play a significant role in navigating the country’s economic situation.
Osita said that to fight food security in the country, there is need to empowers farmers to use the arable land uncultivated.
“With this, our productivity is still low. I believe there is a lot to be done to raise the productivity of farmers,” he said.
He said that to increase productivity, there is a need to improve on irrigation capabilities through dry season farming.
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“Our findings show that farmers are finding it difficult to fuel irrigation facilities.
“We are suggesting that there are solar-powered irrigation pumps that members of the national assembly can use as part of their constituency programmes so as to empower their farmers who are involved in dry season farming so that together, we can increase our production and improve the volume of food available, thereby reducing the impact of food inflation and of course, guaranteeing food security for our citizens,” he said.