The Securities and Exchange Commission has disclosed its intention to collaborate with the Standards Organisation of Nigeria to ensure speedy approval and publication of standards relevant to the commodities trading ecosystem.
This was stated by the Director-General of the SEC, Mr Lamido Yuguda, during a meeting with the SON management in Abuja on Wednesday.
Yuguda said the commission, as part of its implementation of the 10-year Capital Market Master Plan, constituted a Technical Committee on commodities Trading Ecosystem whose mandate was to identify challenges of the existing framework and develop a road map for a vibrant ecosystem.
“A committee comprising of various stakeholders including the SON was set up to drive the implementation of the report. One of the recommendations in the report identified development of grading and standardisation system in line with international best practice.”
According to Yuguda, it is globally recognised that a unique feature of a commodities exchange is the standardisation of the commodities traded on its platform.
He said, “However, the determination of these grades and standards is dependent upon approved local standards which should take into cognisance internationally accepted standards.
“Imbibing international standards for export commodities cannot be compromised if the exchanges have to play a pivotal role in export promotion”.
The SEC boss said in recognition of SON’s statutory responsibility of standard setting in Nigeria, the commission, on behalf of all stakeholders, sought to partner with the SON.
He said this was with a view to ensuring the expedited approval and publication of standards for commodities in the ecosystem.
He said the establishment of relevant standards would be transformational for the Nigerian commodities trading ecosystem