The Director-General, Securities and Exchange Commission (SEC} Lamido Yuguda said the commission is discussing with the Standards Organisation of Nigeria (SON) to develop appropriate rules for the operations of the Lagos Commodities and Futures Exchange (LCFE ) for better appreciation of Nigerian market
“We are working to get appropriate rules that will enhance the operations of the Exchange. We are discussing with Standard Organisation of Nigeria (SON) for the relevant standards required and we are pulling our weight to ensure increased visibility of our commodities in the international market”
Yuguda who spoke during the visit of the House of Representatives Committee on Capital Market and other Institutions to the Exchange said it is necessary to get the foundation right and the commission is ready to assist in every way to ensure that the LCFE gets it right so as to lead it to a more vibrant economy for the nation in the years to come.
The SEC admitted that a vibrant and efficient commodities trading ecosystem as a major driver of economic growth and development assured that the regulator is committed to working with the Exchange to grow the commodities market.
“This visit is a demonstration of the commitment both the legislative arm of government and the regulator have to the development of the capital market of which the commodities market is important
“We are impressed with what we have seen here today. We have engaged them for the past year and are aware they have been working hard to make this exchange successful”
He said the SEC is willing to work with LCFE to develop all the rules needed to realise the potentials of the country in the area of commodities trading, adding that the responsibility of SEC is to ensure good market development, fair trading and investor protection.
Chairman of the committee, Babangida Ibrahim said the country needs to develop the capital market to accelerate economic growth and tackle the infrastructural challenges bedevilling the nation
The lawmakers are on the visit to the Exchanges to understand the workings so as to provide legislative support where necessary.
Capital markets the world over, broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and wealth distribution, providing capital to Small and Medium Scale Enterprises (SMEs), and catalysing housing finance.
“Our purpose is to visit most of the exchanges and understand how they operate snd see if there is any parliamentary intervention we can provide. The only way to save the economy is through capital market activities” he stated.
Speaking earlier, Chairman of LCFE, Onyenwechukwu Ezeagu said the need to fully realise the potential of the Federal Government’s drive towards the development of the agricultural and solid minerals sector and to tap the opportunities thereof, brought about the initiative to establish a Commodities and Futures Exchange, which will be well-positioned to support the Federal Government’s stride to create wealth and enhance the flow of foreign currency.
Ezeagu said the Exchange will redefine practise standards of the Nigerian commodities ecosystem and give hope to producers of commodities who are constantly searching for ways to offload and improve on their commodities.
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