…As NSE Plans to Raise N50b for Commodity Exchange
In a deliberate move to pursue and attain the Federal Government goals on agriculture and food security as enunciated in the Economic Recovery and Growth Plan(ERGP), 2017-2030, Corporate Farmers International Limited (CFIL) in collaboration with the Nigerian Stock Exchange (NSE) and the International Institute for Tropical Agriculture (IITA), have officially launched the Nigeria Stock Brokers Agribusiness Group (NSBAG), after due incorporation at the Corporate Affairs Commission (CAC) as Stock Brokers Agribusiness Limited.
The event which took place last Thursday, at the IITA Lagos office, with the theme; driving agribusiness through the capital market initiatives, according to Dr. Kwesi Atta of the IITA was “an attempt to move agriculture from the culture that has over dominated our thinking into business.”
The NSBAG is to act as intermediaries to buyers and sellers of farm commodities through a regulated platform to achieve Federal Government goals for the agriculture sector.
Also speaking at the event was Mr. Yinka Okunnusi, CEO, Yinka Okunnusi & Co, who, while giving background information about NSBAG hinted that the NSE would raise N50b for commodity exchange to support the initiative because agribusiness according to him is a very serious business that will drive Nigeria’s economy.
“This event is to bring about what we need to do to move this industry forward. Agribusiness is a very serious business because it is what will drive Nigeria’s economy. Because of this, we are trying to raise N50 billion for commodity exchange as the nation’s GDP is expected to rise from N16 to N20trillion from 2017 to 2020 through agribusiness.
So we have the capacity to get small and medium scale enterprises listed on the NSE with little strenuous conditions to achieve the foregoing”.
The core mandate of the NSBAG according to Yinka Okunnusi, is a special purpose vehicle formed to achieve the following objectives: the dissemination of concepts of agribusiness to the stockbrokerage community by members of CFIL, so that the latter can fully comprehend, appreciate and support its various value-chains; the guidance of members of the stockbrokerage community by CFIL in taking cognate steps and investment decisions into various agribusiness ventures and opportunities; to act as advisors, consultants and project managers for agribusiness projects for members and other interested persons; to organize training, conferences, seminars, and other knowledge dissemination media for the expansion of concepts of agribusiness; to ventilate the possibilities and capabilities of agribusiness in the Nigerian economy using the veritable capital market platform, with the professional guidance and technical assistance of the stock broking community and the CFIL respectively; to provide purposeful support for the planned commodity trading currently being spearheaded by the Association of Stockbroking Houses of Nigeria, ASHON; to act as advisers/technical partners to issuing houses in the packaging of agribusiness-related funds (mutual funds, hedge funds, PP, IPO, etc) so as to promote the growth of agribusiness and also deepen the capital market; to provide cognate professional support and encouragement to companies operating in the agriculture/agribusiness sector of the Nigerian economy so as to position them to raise cheap fund on the Nigerian capital market; and to attract many large farms to get listed on the NSE, so as to preserve them from extinction when their initial promoters pass away, as has been the case with many such entities in the past.
The following dignitaries attended the event: Ms. Pai Gamde, ED, NSE, represented by Mr. Sam Wily Ndata (NSE X-Academy); Dr. Frederick Schreurs, IITA Business Incubation Platform (BIP); Prof. B. A. Adewumi, Professor of Agric Engineering, FUNAAB, Abeokuta; and Chief Patrick Ezeagu, President, Association of Stockbroking Houses of Nigeria.
Others are: Mr. Oluwaseyi Abe, President-in-Council, Chartered Institute of Stockbrokers; Mrs. Toyin Sanni, Group MD, United Capital Plc; Mr. Isreal Peters, African Union; Mr. Higo Aigboje, MD, Capital Bancorp Plc; and Mr. Ayodeji Balogun, AFEX Nigeria Country Manager.