Commodity Exchange Moves To Reduce N2.7tn Post-harvest Losses
The Nigeria Commodity Exchange has entered into an agreement with the New Nigeria Commodity Marketing Company to ensure a massive boost in the trading of agricultural produce in the country.
The Managing Director of NCX, Zaheera Baba-Ari, signed the Memorandum of Understanding on behalf of the Exchange while the Managing Director of NNCMC, Mr Abubakar Musa, signed on behalf of his company.
The framework is expected to stem the tide of post-harvest losses which the Nigerian Stored Products Research Institute estimated to be $8.9bn (about N2.71tn based on the N305 to a dollar official exchange rate of the Central Bank of Nigeria).
Baba-Ari said the agreement marked a renewed commitment to reposition Nigerian commodity trading sector.
She said under the arrangement, NNCMC would store and trade its commodities of interest on the trading platform of the NCX.
She explained that the agreement would enable the Exchange to avail NNCMC of its contacts across the world under its trading operations.
Speaking further, the NCX boss said the implementation of the MoU would enable the exchange connect more sellers with buyers across the globe.
She said, “With the implementation of this MoU, NCX is now able to link sellers with buyers across Nigeria and indeed around the world of commercially viable agro-commodities such as maize, sorghum, soya beans, sesame seed and cashew , among many others.”
Zaheera commended the board and management of NNCMC for the cooperation in ensuring the partnership to boost agro-commodity business in the country.
The NCX Managing Director said the agency had established a network of warehouse as delivery locations for trading operations, adding that integrated trading system had also been inaugurated.
On his part, the NNCMC MD stated that the pact would go a long way to repositioning the commodity market.
Musa said, “It (the agreement) will not only improve the marketing of commodities (agricultural produce) in Nigeria but will also enable our teeming farmers to take care of post-harvest losses that are generally recorded as well as guard against price fluctuation and discover better competitive prices for commodities.”
Musa said the NNCMC, which is jointly owned by the 19 northern states and private investors with ownership stake of 35 per cent and 65 per cent respectively,would ensure more competition in tradable commodities to ensure value for agricultural produce in the country.