The Nigeria Commodity Exchange (NCX) and the New Nigeria Commodity Marketing Company (NNCMC) have entered into partnership to facilitate trading in commercially viable agricultural commodities in the country.
The arrangement, our correspondents learnt, might be the beginning of liquidity on the Exchange.
Daily Trust reports that NNCMC was primarily established to improve the sale of agricultural commodities in Nigeria by stabilizing agric produce prices. It is jointly owned by the 19 northern state governments under a public-private arrangement.
NCX’s Managing Director, Mrs. Zaheera Baba-Ari, said while signing the Memorandum of Understanding (MoU) for the partnership that under the arrangement, NNCMC would store and trade its commodities of interest on the trading platform of the NCX, while in turn, the exchange would avail NNCMC of its contacts across the world under its trading operations.
The MD also explained that despite the challenges facing the exchange, the management under her leadership, was able to build a robust integrated trading system and establish a network of warehouses as delivery locations for NCX trading operations.
She said the exchange was able to liaise with the Standards Organisation of Nigeria (SON) for the emplacement of grades and standards for tradable commodities.
The MD assured that the new arrangement has signaled the final readiness of the commission to commence business with the local and international commodity trading sectors.
‘’With the implementation of this MoU, NCX is now able to link sellers and buyers across Nigeria and indeed around the world of commercially viable agro-commodities such as maize, sorghum, soya beans, sesame and cashew,’’ she said.
Earlier, the NNCMC managing director, Abubakar Musa, had assured that the partnership would guard against price floatation in agric produce, adding that his company would tap from the vast contacts of the NCX.
He urged stakeholders to pay more attention to the market end of agric produce instead of the production alone, adding that only good and guaranteed market can attract more interest into the production.