SEC, SON partner to develop standards for commodities

The Standards Organisation of Nigeria and the Securities and Exchange Commission are working together to create standards for commodities.

According to The Times, in an effort to boost the economy, create jobs for Nigerians, and give the country foreign exchange, the director general of the SEC, Mr. Lamido Yuguda, noted that Nigeria had a variety of commodities that may be exported.

Yuguda stated that the country’s agriculture sector is anticipated to expand significantly shortly.

He stated that: “the Commission is working with the Standards Organisation of Nigeria to develop standards for commodities in its effort to ensure that agricultural produce is of standards and quality that are suitable for export.”

According to the DG, the creation of these standards will open the door for the export of these goods to the global market, which will strengthen the Nigerian economy.

“At this point, we have authorized the trading and framework for operations of various instruments for a total of 5 exchanges. Together with NAICOM, CBN, SON, the Federal Ministry of Solid Minerals, and Mines in various ways to develop the sector. Ranging from capacity building, standard setting, domestic and international advocacy, etc.”.

“The majority of our resources, despite the fact that we are a very good agricultural country with many of them, are currently sold in local markets without any kind of standards, and as a result, a lot of our agricultural produce is rejected on the global market.

“Smaller countries can export their agricultural goods, particularly fruits, as you can see. We produce some of the best fruits in the world, but regrettably, because of standardization concerns, we are unable to compete in this market.

“This is a starting point, and I think that going further soon this could be something significant,” he said. The agricultural industry is anticipated to expand significantly soon.

“Due to the numerous opportunities in that industry, we are also working with the Ministry of Solid Minerals.

“However, there are a lot of artisanal mining currently, so there needs to be cooperation between State governments and the Ministry of Mines in order to create some sort of standardization, ensure that those mining are granted government licenses, and ensure that this mining is taking place in an environmentally friendly way.”

According to Yuguda, the commission established a Technical Committee on Commodities Trading Ecosystem as part of its implementation of the Capital Market Master Plan. The committee’s responsibility was to identify issues with the current framework and create a path for a thriving ecosystem.

“To oversee the report’s implementation, a committee made up of several stakeholders, including the SON, was formed. The creation of a grading and standardization system in line with international best practice was mentioned as one of the report’s suggestions,” he continued.