Lawmaker: Commodities exchange can help create jobs, grow economy

Osita Izunaso, chairman, senate committee on capital market, has tasked relevant stakeholders in the capital market to strive hard to strengthen the commodities exchange toward actualising its full potential.

Izunaso spoke at a workshop for members of the committee, with the theme “On Infrastructure Financing Development of the Commodities Ecosystem through Commodities Exchanges” in Abuja on Sunday.

He said for Nigeria to overcome its challenges, economic diversification was essential, and commodities exchanges could play a vital role in achieving the goals of job creation and economic growth.

According to him, the executive and the legislature must work in harmony to ensure that commodities exchange is strengthened in line with the global best practices.

Izunaso explained that the workshop was aimed at positioning the community exchange toward ensuring food security in the country as well as enhance foreign exchange earnings.

“We discover that people are talking about money market, capital market. Nobody is dwelling on commodity,” he said.

“So that is why we have to partner with Lagos Commodities and Futures Exchange to bring the story nearer home.

“There must be need for us to ensure that all the export commodities in Nigeria should pass through the commodity exchange as a way of getting revenue for the country.

“Commodities exchanges are game-changers. They enable investment diversification, manage risk, ensure fair pricing and streamline transactions.

“To boost Nigeria’s competitiveness, we need a thriving commodities trading ecosystem.

“Recent global events highlight the urgent need to diversify our economy. Prioritising and accelerating the development of non-oil commodities is crucial, especially to diversify foreign exchange sources.”

Using the Lagos Commodities Exchange as an example, the lawmaker said the platform had recorded some major achievements lately, which demonstrates the potential of the sector.

He also said for Nigeria to overcome its challenges, economic diversification was essential, adding that commodities exchanges could play a vital role in achieving the goals of job creation and economic growth.

Izunaso also said the senate, through legislation, would ensure adequate legal frameworks for commodity exchanges, warehouses and financing.