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Nigeria: Ashon Highlights Measures to Grow Commodities Exchanges

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The Association of Securities Dealing Houses of Nigeria ( ASHON) has urged the federal government to initiate policies that will enable commodities exchanges to contribute to economic growth in the country.

The call was made by the Chairman of ASHON, Chairman, Chief Onyenwechukwu Ezeagu, in a statement, advocating a level playing field for all operators of commodities exchanges in Nigeria.

According to ASHON, an enabling operating would enhance optimal performance of everyone in the commodities exchanges’ value chain.

” To enable the operators in the commodities ecosystem operate optimally, the government should enact relevant policies that prevent illegal mining by foreigners, ensure autonomy of the capital market apex regulator, the Securities and Exchange Commission (SEC), protect export proceeds, legislate laws to enable Agricultural Commodities to be linked to financial markets and fungibility and support for Pension funds for increased participation in the commodities ecosystem,” he said.

The securities dealers noted that the proposed capital injection of N50 Billion into the Commodity Exchange of Nigeria (NCX) might have unintended effect of creating uneven playing ground for other commodities exchanges that are privately promoted.

” The announcement to inject N50 billion into the NCX by CBN is a welcome development. Any act by the federal government to stimulate the growth and development of the commodities ecosystem through the commodities exchanges is highly beneficial to the entire ecosystem.

“Commodities exchanges play an important role in the commodities ecosystem because they introduce structure, transparency, and price discovery into the system.