The Nigeria Commodity Exchange (NCX) and the New Nigeria Commodity Marketing Company (NNCMC) have signed a memorandum of understanding (MoU) that will enable both parties link sellers with buyers of agro-commodities within the country and globally.
The agro-commodities in focus include: Maize, Sorghum, Soya beans, Sesame seed, Cashew, and many other home-grown grains.
Speaking at the signing of the MoU, Zaheera Baba-Ari, managing director, NCX, says the pact is geared towards having a working partnership with the NNCMC to facilitate trading in commercially viable agricultural commodities.
Giving further insight on the thrust of the MoU, she said, “With the implementation of this MoU, NCX is now able to link sellers with buyers across Nigeria and indeed around the world of commercially viable agro-commodities such as maize, sorghum, soya beans and other locally produced grains.”
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In his earlier remarks, Abubakar Musa, managing director of NNCMC, said the MoU would also address concerns of post-harvest losses, which see farmers loosing billions of naira from their agro-commodities, while also serving as a price hedge in the event of fluctuating food prices.
He pointed out, “This MoU signing is the beginning of history, and we would get this market competitive for the average Nigerian farmer, the food companies, for the industry, edible flour companies would now look inward and ensure the farmer benefits through this MoU.”
Speaking further on how the MoU will drive the privatisation of the NCX, he said, “This is exactly what we are saying, the NNCMC is a Public Private Partnership with 35 percent of the equity held by the government and the remaining 65 percent owned by individuals and institutional arrangements. So, 65 percent already signposts private sector led. That is the global language.”
The NNCMC, it would be noted, was put together by the 19 Northern states of the federation through the NNDC, which is the New Nigerian Development Company, a development finance institutions that promotes investments in the country.
BusinessDay also learns that the NNCMC is a trading platform that aggregates commodities of different types and also seeks to grade commodities and standards, warehouse them with a view to preserving them for the food security of the country as well as provide for the industrial raw material requirements the industry needs.
