Commodities risk management, hedging top at ACT Financial training in Abuja

Act Financial Training Centre, in association with the Securities and Exchange Commission (SEC), AFEX Commodities Exchange Limited, and ComX, Nigeria’s first digital commodity trading platform recently organised an agricultural commodity trading course aimed at buyers, traders, and those interested in understanding how to manage risks, while positioning for profits in agricultural produce futures.

The one-day course focused on the foundations of commodity markets in Nigeria. It discusses how commodities markets are created, how commodities are traded from producers to final consumers, the role of transportation and storage, operational structure of the commodities markets, among other topics.

Attendees were also exposed to the elements of spot, futures and futures option markets, basis, hedging, price discovery, fundamental analysis, and risk management strategies. They also gained knowledge of the various commodity assets in Nigeria, commodity evaluation and grading, and how to trade on AFEX’s ComX platform.

In addition, it provided a broad and detailed discussion of economic theories behind markets, how they work and the current state of these markets around the world.

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According to Dahiru Usman, the course coordinator, “In the wave of the current economic down turn in Nigeria, and the Federal Government’s diversification plan from dependence on crude oil to agriculture and value-added agribusiness, there is a need for proper development of manpower with the entrepreneurial skillsets in agricultural commodities as well as the development of the supporting market infrastructure that would enhance liquidity, price discovery and risk management for participants.”

He went further to add that “Asides its profit potential, knowledge of agricultural commodity trading empowers traders with a viable diversification option, agro-commodities trading provides effective hedging options against risks, especially in Nigeria, where farm harvests are vulnerable to weather uncertainties and disease.”

Expert resource persons who facilitated the course were Kola Oyedokun, managing director, DSU Brokerage Services Limited, Abuja and Chairman of ACT Financial Training Centre, Akinyinka Akintunde, managing director, AFEX Commodities Exchange Limited, Sam Okoh, Chief Operations Officer, Prime Commodity Exchange Limited, Yusuf Ogunbiyi, Investment Manager, AFEX/ComX, Zannah Hassan, Managing Director, Farmfields Agro-Allied Services and Bello Lafe, Country Manager, Collateral Management International Ltd.

Participants at the first edition held in Abuja on August 7, 2021 included staff from Niger State Commodity and Export Promotion Agency, Niger Investment House, Kwik Kapital Limited, Jaiz Capital, Credent Investment Managers Limited, and Bauchi Investment House, among others.

In response to the solid interest received from the public, Kola Oyedokun, managing director of ACT Financial Training Centre, said that the training would be sustained. It will be held on the first Saturday of every month at Genius Business School, Gateway Plaza in the Central Business District of Abuja.

ACT Financial Training Centre is a leading provider of information, training, and coaching in financial, management, agricultural commodity as well as non-interest finance training. ACT FTC is accredited by the Centre for Management Development, the operational arm of the Nigerian Council for Management Development (NCMD).