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SEC Sets 7-Year Timeline To Revive, Develop Commodities Market

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5 years ago

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THE Securities and Exchange Commission, SEC, and other stakeholders in the commodities ecosystem have set a seven year timeline to revive the commodities market in Nigeria through the Nigerian Commodity Exchange, NCX, and set it at par with other commodity exchanges in other parts of the world. The restructuring will be concluded in 2025. SAN The Commission is said to be focusing on the importance of commodity exchange to the economic diversification agenda of the federal government and the need to grow the agriculture value chain. Part of the restructuring plan includes injection of fund by the Nigeria Sovereign Investment Authority (NSIA) into the NCX which has been comatose for some years. This comes as the only functional commodity exchange in Nigeria -AFEX Commodities Exchange – a privately owned commodities exchange, moved 46,160 metric tonnes (MT) of commodities (ginger, paddy rice, soya beans and maize among others) worth N6.3 billion between second quarter 2016 and fourth quarter, 2017, according to available data. To also facilitate the plan, the Commission has set up a special division – Commodities Division – as part of measures to strengthen regulatory capacity for the market. The NCX has been battling with a host of challenges, including lack of funding occasioned by government’s inaction, lack of enabling laws and proper understanding of the operations of commodities exchange. investment in Nigeria.

Phases of the restructuring Recommendations by the Technical Committee, TC, on Enhancing the Commodities Trading Eco-system, set up by SEC to recommend solutions to the many problems of the NCX showed that the planned restructuring would be in four phases with the first phase lasting for two years from 2018 to 2019. The first phase, according to the report of the committee, will focus on achieving food/input sufficiency, price discovery and market development with special attention on agriculture produce like maize, sorghum, soya beans, cassava and rice. This phase will also involve engagement in public enlightenment and development of education roadmap by the SEC as well as encouragement of investment in warehouses and storage facilities by both the Commission and private sector operators. This phase will also involve organisation of farmers into cooperatives by the Central Bank of Nigeria, CBN, Federal Ministry of Agriculture and Rural Development, FMARD, and SEC to aggregate produce and encourage them to become members of the exchange among other relevant actions. The second phase, which will last for another two years from 2020 to 2021, will focus on the development of export-focused commodities in agriculture like cocoa, sesame, cotton and palm oil, and continuous de-risking of agriculture value chain by the National Insurance Commission, NAICOM. In the third phase (2022-2023), exchanges would be expected to key into Customs Single Window System to ease process of export. During the fourth phase of the project (2024-2025), SEC and other stakeholders will ensure that there is strong international presence in the commodities market, while tradeable commodities will be expanded to include solid minerals and energy. Challenges However, the NCX has been faced with beehive of challenges, which the committee identified to include lack of proper funding to carry out its functions, which has hampered the ability of the NCX to enter into technical collaboration for capacity building and knowledge transfer that is badly needed with established commodity exchanges. In addition to these challenges, the exchange is faced with weak supply, lack of interest by operators in the securities market to open commodities trading subsidiaries, low understanding of the workings of the exchange and the absence of supportive infrastructure and institutional arrangements that could strengthen the supply side of the market. There is also the non – existence of vibrant farmers’ co-operatives that could bulk the produce of their members for wholesale marketing on the floor of the Exchange. Equally lacking were commodity grades and standards as well as farmers’ credit system based on Warehouse Receipts. Recommendations/Solutions One of the key recommendations of the committee is that commodity brokers/dealers should be encouraged to trade and not penalized by excessively high capital requirements. According to the report, in many other commodity markets, spot market brokers trading only physical contracts do not carry any mandatory capital base. The Committee stated that clear and straightforward regulation is required for the effective operation of a commodity exchange and advised that regulation of the spot markets should be devolved from the SEC to the Commodity Exchanges among other recommendations. Mary Uduk, SEC’s Action According to the Acting Director of SEC, Ms. Mary Uduk, in furtherance of the commitment to develop a vibrant commodities eco-system, the Commission has commenced the implementation of measures to strengthen regulatory capacity by establishing a Commodities Division. She said: “One of the cardinal objectives of the current government is diversification. Like you all know, Nigeria is a mono-product economy, which is oil. The capital market is actually, the next center of any economy and we at the SEC are trying to key in to that diversification objective of the government. Nigeria is majorly also an agrarian economy where every street in this country has a product that is exportable. “Hence, the best way for farmers to have value for their products is for there to be price transparency and a level playing field for every participant in the commodities space. For that to happen there will be a virile commodities exchange.”    Continuing, she said: “The SEC sees it as major priority to help the farmers, the people and the economy, hence the need to re-establish the Commodity Exchange Division, empower it, provide the resources, training and the necessary where-withal to make sure that we regulate the market. Of course, we have the responsibility to support the creation of exchanges according to perception 13 of the Investment and Securities Act, ISA. That is why we are doing what we are doing in order that the Nigeria becomes better in the process of diversifying the economy.”

 

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Business

Access Bank Group, Aig-Imoukhuede Foundation Pledge $300m to Transform Africa’s Economic Landscape

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3 days ago

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May 16, 2024

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“We can’t wait to be saved; Africans need to solve Africa’s problems. This $300 million commitment reflects this reality’’ – Aig-Imoukhuede

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Aig-Imoukhuede Foundation and Access Bank Group have pledged $300 million in charitable commitments over the next 20 years. Access Bank has committed $200 million and Aig-Imoukhuede Foundation committed $100 million.

President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.

This will fund African government initiatives with a proven potential to transform national economic performance.

Speaking about the commitment, Aigboje Aig-Imoukhuede, Chairman, Access Holdings and Co-Founder, Aig-Imoukhuede Foundation, said, “We can’t wait to be saved, Africans need to solve Africa’s problems. This $300 million commitment reflects this reality.”

President Paul Kagame, President of the Republic of Rwanda and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, at the Africa CEO Forum 2024 in Kigali…Thursday.

Appropriately, this announcement was made at the Africa CEO Forum 2024 in Kigali, Rwanda, where the theme of this year’s event is ‘At the table or on the menu?’. At the event, CEOs from across the continent joined to discuss how Africa can demand a seat at the global table, rather than continuing to wait to be invited.

The fund will see the creation of an African-led Super NGO in partnership with academics, experts and philanthropists across the globe who are committed to closing the gap between Africa and the rest of the world. The NGO will work with African governments to provide the funding, governance and talent required to successfully execute game changing government reform programs, especially in the delivery of digital public infrastructure.

The development comes at a time when Ajay Banga, President of the World Bank, has warned wealthy countries that it would be short-sighted to “ignore” Africa. This landmark Africa-led initiative could not have been better timed.

Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC and Co-founder, Aig-Imoukhuede Foundation and Ofovwe Aig-Imoukhuede, Co-founder, Aig-Imoukhuede Foundation, on the sidelines of the Africa CEO Forum 2024 in Kigali…Thursday.

“We African leaders cannot sit back and watch the 4th Industrial Revolution transform the rest of the world while leaving Africa falling further behind. We have to create our own ‘table’ by using technology to unlock the power of our youth, giving Africa a greater voice in the world. It’s today’s leaders who will determine whether or not we grab this opportunity,” Aigboje Aig-Imoukhuede continued.

The availability of digital public infrastructure is a proven and cost-effective way for developing nations to break free of the status quo. It provides citizens with access to the same public goods and services available to citizens of advanced nations.

The India Stack has become a shining example of what can be achieved when visionary public and private sector leaders partner for development.

The Access Bank and Aig-Imoukhuede Foundation inspired NGO will make such partnerships a reality and delivering measurable improvements to the lives of Africans across the continent.

Notes to Editor:
For media inquiries, please contact:
communication@aigafrica.org or +234 808 5716 788
mediarelations@accessbankplc.com or +234 803 320 4315

ABOUT THE AIG-IMOUKHUEDE FOUNDATION
The Aig-Imoukhuede Foundation is a public sector-focused philanthropic organisation founded by Aigboje and Ofovwe Aig-Imoukhuede to improve the lives of Africans through transformed public service delivery and increased access to quality primary healthcare. The Aig-Imoukhuede Foundation accomplishes its mission by supporting the reform initiatives of public sector entities, providing financing, technical support, and capacity-building programmes and resources for the public sector workforce. The Foundation also provides funding and strategic support to drive the work of affiliate organisations such as Africa Business Coalition for Health (ABC Health), the Private Sector Health Alliance of Nigeria (PSHAN), the Nigerian Solidarity Support Fund (NSSF) and others.

For more information, please visit www.aigimoukhuedefoundation.org.

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AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL

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5 days ago

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May 14, 2024

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AIGBOJE AIG-IMOUKHUEDE APPOINTED PRESIDENT OF FRANCE NIGERIA BUSINESS COUNCIL

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

At the esteemed Choose France Summit 2024, held on Monday, May 13, 2024, Aigboje Aig-Imoukhuede, the Chairman of Access Holdings PLC, was formally appointed as the President of the France Nigeria Business Council (FNBC) by the President of the French Republic, President Emmanuel Macron.

Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.

The France Nigeria Business Council (FNBC) stands as a pivotal coalition of Nigerian private sector business leaders, committed to enhancing bilateral relations between Nigeria and France. Its core objectives revolve around the facilitation of trade, investments, infrastructural development, job creation, and cultural integration between the two nations.

Since its establishment in June 2021 under the auspices of President Emmanuel Macron, the FNBC has diligently utilised its member network to champion investments across key business sectors, fostering cultural understanding and driving economic growth between Nigeria and France. Notably, it has catalysed Nigerian businesses’ ventures into investment opportunities within France.

Comprising 13 distinguished members, the Council boasts prominent figures including Aigboje Aig-Imoukhuede (President), Abdul Samad Rabiu, Gilbert Chagoury, Mike Adenuga, Aliko Dangote, Jim Ovia, Tony Elumelu, and John Coumantaros. Additionally, Kola Karim, Leo Stan Ekeh, Daisy Danjuma, Gbenga Agboola, and Jean Haas serve as integral members, with Jean Haas holding the position of Secretary.

Aig-Imoukhuede’s appointment follows the passing of Herbert Wigwe, the Council’s former President, in February 2024.

Aigboje Aig-Imoukhuede having a handshake and a tête-à-tête with President Macron at the Council’s meeting with the President, and Gilbert Chagoury looking on.

The Choose France Summit is an annual gathering that convenes business magnates, investors, and governmental dignitaries to explore investment prospects within France. The highlight of the Summit was the Presidential Dinner, characterised by high-level engagements and mutual commitments between participating parties.

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ACCESS BANK (SL) LTD STRENGTHENS LEADERSHIP TEAM WITH KEY BOARD APPOINTMENTS, NAMES NEW CHAIRMAN

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6 days ago

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May 13, 2024

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AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank Sierra Leone Ltd (‘Access Bank (SL) Ltd’) has announced the appointment of new executives to its Board of Directors (‘the Board’), further strengthening its leadership team and advancing the implementation of its growth and transformation strategy.

These appointments also reflect the Bank’s commitment to fostering growth and development while maintaining the highest standards of governance and stewardship.

Joining the Board as Non-Executive Directors are Maurice Nathaniel Cole, Nsikak N. Usoro, Michala Mackay, Ibrahim Khalil Lamin, and Kolawole Augustine Ajimoko.

The appointees boast a wealth of expertise from diverse sectors, including banking, telecommunications, corporate governance, compliance, and finance. Their combined experience and vision will contribute to shaping the future trajectory of Access Bank (SL) Ltd.

Cole will serve as Chairman, following the exit of Alice Marie Onomake and will bring his experience to the fore as Access Bank (SL) Ltd works to consolidate its market position and deliver value for all its stakeholders.

“We are thrilled to welcome our new executives to Access Bank (SL) Ltd,” said Ganiyu Sanni, Country Managing Director, Access Bank Sierra Leone Ltd. “Their leadership and vision will be invaluable as we navigate through challenges and pursue sustained success. We extend our gratitude to outgoing Chairman, Alice Marie Onomake, and Non-Executive Director, Aminata B. Dumbuya, for their dedicated service and contributions to the Bank.”

Access Bank (SL) Ltd remains committed to excellence, transparency, and accountability as it embarks on this exciting new chapter. The Bank looks forward to leveraging the collective expertise of its leadership team to drive innovation, foster growth, and create lasting impact for its customers and communities.

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