FG restructures commodities exchange, halts privatisation plans

Published January 29, 2021

Nike Popoola

The Federal Government is repositioning the Nigerian Commodities Exchange into a commercially viable platform for delivering efficient pricing of Nigeria ’s agric produce , among others .
The government has also stopped the current plan to privatise the NCX , given the unfortunate arbitrage opportunities which it noticed in the private sector arrangement , which had become an obstacle in moderating food prices in Nigeria.
The Governor , Central Bank of Nigeria , Godwin Emefiele , said this during the inaugural meeting of the steering committee for the repositioning of the NCX on Thursday .
In a statement from the CBN , Emefiele said the Federal Government along with the CBN had implemented several intervention schemes in the agriculture and manufacturing sectors , aimed at boosting employment generation and wealth creation , reducing dependence on imported food items, conserving foreign exchange earnings , and spurring economic growth .
Notwithstanding the gains that had been achieved , he said , there were still significant challenges within the Nigerian agricultural commodities value chain that would need to be addressed, in order to accelerate investment and productivity in the sector .
Speaking on the restructuring approved by the Federal Government , Emefiele said , “ That CBN , as majority shareholder of NCX , should collaborate with Nigeria Sovereign Investment Authority and Africa Finance Corporation , under the Infraco Structure , to develop and implement a strategic repositioning plan for the NCX to make the NCX an efficient world class Commodity exchange.
“ The formation of a steering committee chaired by the CBN governor and including representatives from NSIA and AFC as well as the federal ministries responsible for finance , budget and national planning ; industry , trade and investment; and agriculture and rural development , to oversee the implementation of this strategic plan .

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