SEC, SON collaborates to fast track approval of relevant commodities trading standards

The Securities and Exchange Commission (SEC) is collaborating with the Standards Organization of Nigeria (SON) towards ensuring faster approval and publication of standards relevant to the commodities trading ecosystem.

This disclosure was made by the Director-General of the SEC, Mr Lamido Yuguda, during a working visit to the SON Management in Abuja recently.

According to Yuguda, the commission has constituted, as part of its implementation of the 10-year Capital Market Master Plan, a Technical Committee on commodities Trading Ecosystem that has been mandated to identify the challenges of the existing framework and develop a road map for a vibrant ecosystem.

What they are saying

According to Mr. Lamido Yuguda, DG of SEC:

• “The prompt establishment of relevant standards would be transformational for the Nigerian commodities trading ecosystem. Standards provide consumers with an assurance of fitness of purpose, processors with commodities specifications, and serves as reference point against which features of commodities can be compared.
• “The commission was committed to mobilizing relevant stakeholders in the commodities trading ecosystem to provide the support needed by the SON to achieve expedited approval and publication of the commodities standards.
• “Standard setting is a project of national importance and the SEC along with other stakeholders will work with the SON to achieve the objective and by extension national food security and self-sufficiency.”

According to SON Director-General, Mallam Farouk Salim:

• “If we gather forces to improve on standardization, our farmers and processors would be able to attract funding, export commodities of high standards and attract the much-needed foreign exchange.
• “The imminent implementation of the African Continental Free Trade Agreement in January 2021 necessitates that stakeholders in Nigeria join forces to protect local manufacturers from unfair competition from importers of substandard and cheaper products.”

Why this matters

• The symbiotic relationship between SON and SEC is quite critical in protecting the nascent economy as key regulators.
• The benefit of this vital collaboration would result in increased value to smallholder farmers due to premium paid on high-quality commodities, reduction of post-harvest losses, quality packaging and storage, as well as increased employment opportunities through the set-up of warehouses and assaying companies to provide quality assurance services.
• Other benefits include global acceptance of commodities produced in Nigeria for export, leading to increased foreign exchange earnings, increase in number of processing plants in Nigeria due to better quality of raw materials and overall growth of the Nigerian economy.