FG Begins Revitalisation of Abuja Commodity Exchange

27 Nov 2012

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Managing Director, ASCE, Mr. Yusuf Abdurrahim

Crusoe Osagie
The Federal Government has commenced the process of transforming the Abuja Securities and Commodity Exchange (ASCE) into a first-class organ, as part of the Federal Ministry of Trade and Investment’s broader Nigerian Industrial Revolution Plan. The transformation is expected to be completed in the next 12 months.

Disclosing this during a stakeholders’ workshop on the revitalisation of the Exchange in Abuja, the Managing Director, ASCE, Mr. Yusuf Abdurrahim, said a new bill for the establishment of the Nigerian Independent Ware House Regulatory Agency would soon be sent to the National Assembly.

Abdurrahim noted that the Minister of Trade and Investment, Mr. Olusegun Aganga, had already initiated reforms aimed at making the ASCE a world class institution in line with the Transformation Agenda of President Goodluck Jonathan’s administration.

He said, “The programme we have just concluded is another round of sensitisation where we brought together stakeholders in the Commodity Exchange Project to continue to discuss the various building blocks of a functional Exchange. This includes a Ware House Receipt Bill which we discussed extensively during the workshop. We have drawn experiences from our local practice and that of Ethiopia. Probably, this might be the last discussion on the Ware House Receipt Bill before it goes to the National Assembly.

“The Commodity Exchange is a very important infrastructure for agricultural transformation, as well as looking into a transparent market for solid minerals and energy sectors. Already, the Minister of Trade and Investment, Mr. Olusegun Aganga, has initiated some reforms  and he is working hard to make the Abuja Exchange as  viable, vibrant, and effective as possible so that it can serve the needs of the Nigerian economy very efficiently,” he added.

Speaking during the event, the Permanent Secretary, Federal Ministry of Trade and Investment, Mr. Dauda Kigbu, said the development of the Ware House Receipt System would boost the operations of the ASCE and also help farmers overcome the problem of post-harvest loss.

He said, “The Ware House Receipt System is a basic infrastructure that will improve the operations of the Abuja Securities and Commodity Exchange. A WHR system enables farmers to use their stored commodities to secure credit from banks and other financial institutions. Storing their commodities in standard warehouses will enable them to avoid post-harvest losses and defer sales till the price of their commodities appreciates. Also, they have an option of using the WHR as collateral to obtain loans from banks to enable them meet other obligations.”

Speaking on the sidelines of the event, the Managing Director/Chief Executive Officer, Ethiopian Commodity Exchange, Dr. Eleni Gabre- Madhin, said the government of Ethiopia had begun a collaborative initiative with Nigeria in other to transform the Abuja Securities and Commodity Exchange into a world class institution that would drive the Transformation Agenda of President Goodluck Jonathan’s administration.

She said, “The situation now is that Nigeria is very exciting and promising because there is a very strategic alignment between the objectives of the Industrial Revolution Plan; Agricultural Transformation Agenda, and the Central Bank of Nigeria - which are all committed to the development of agriculture. I think the objective of the Nigerian Government is to use the Abuja Securities and Commodity Exchange to transform the Nigerian economy but also to become a continent–wide and regional power house.”

Tags: Business, Featured, Nigeria, Revitalisation, Commodity Exchange

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