The decline in the country’s revenue and the abundant opportunities are forcing the Federal Government to step up efforts for a buy-in in agricultural commodity exchange to further grow the agricultural business which is now an alternative to the dwindling oil exports..
Nigeria has been a monolith economy with its largest earnings coming from the crude oil. However, oil revenues have crashed owing to the declining oil prices in the international market. As at last week, oil in the international market was—, putting the government in a pitiable position.
With this, government efforts are now geared to non-oil sectors especially the agricultural sector which produces are appreciating to bolster and save the economy.
The nation’s commodity exchange, which is expected to pool farmers and buyers, has been at comatose for sometimes but the government is making efforts to toe the line of China to serve as new revenue earners for the country.
Omololu Opeewe, Acting Permanent Secretary in the Ministry of Industry Trade and Investment, assures investors of the varying opportunities and noted “Nigeria’s appreciation in agricultural produce exposes opportunities for Agricultural Commodity exchange which was the catalysts for Chinese Industrialization.
Commodity trading in China has a short but high-growth history and with an increasing product variety and deepening liquidity pools, the sector is playing an increasingly important role in serving the national economy.
International Monetary Fund’s (IMF) 2012 on China’s commodity market noted that the country is a major participant in world commodity markets with large impact on commodity prices.
‘There is no going back on zero oil policy by the present administration, as it looks for alternative ways of diversifying the economy through the non-oil sector.
The current administration has singled out agriculture to redeem the country’s economy and efforts are To geared towards this direction
the Nigeria Investment Promotion Commission NIPC is also toeing this line and according to Uju Hassan Baba,its Executive Secretary, the commission has evolved strategy to advance investment in various aspects of the nation’s economy.
She assured the commission would keep promoting economic linkages and technology transfer between major projects and smaller businesses to boost employment and wealth creation
To the Nigeria Commodity Exchange however, the government could achieve its aim if it eveolved supportive policies that could create a soft landing for investors noted Zaheera Baba-Ar, its Managing director.
“Federal Government should expedite action on repairing commodity warehouses across the country which are in disrepair. There is also the need for a legal framework that will ensure investors have a template to invest on, in addition to mandatory courses for farmers to properly participate in the process”
She cited Ethiopia now on the verge of attaining food sufficiency in agriculture, an achievement made possible by its enabling laws that had sustained its commodity exchange and created wealth for its farmers.
Despite Nigeria’s over dependence on oil resources,the non-oil sector which currently contributes $2.7 billion to the GDP still yearns for investment in Cassava, Sweet Potato,Chilli Pepper,Coffee,Groundnut,Pineapple,Yam flower,Cashew nuts,as the Federal Government intensifies effort through the Standard Organisation of Nigeria to ensure Nigeria Products breaks even into European markets as regards international certification standards.
Comments are closed.