Capital market to unlock better access to agriculture credits, markets – SEC

The Securities and Exchange Commission (SEC), says the capital market has the capacity to unlock better access to credit and finance for the agricultural and solid minerals sectors.

The Acting Director-General of the commission, Ms Mary Uduk said this while briefing newsmen on the forthcoming Commodities Market International Conference in Abuja on Wednesday.

Uduk said that access to credit to the sectors could be unlocked through innovative financing structures and products.

She explained that although agriculture had the potential to deliver the country’s food security needs, credit to the sector had remained less than five per cent on bank lending for the past 10 years.

The acting director-general said the benefits inherent in the agriculture and solid minerals sectors prompted the decision of the commission to host the conference.

“I will want to recognise the Federal Government’s action in diversifying the economy and moving away from oil.

“Agriculture remains an important part of that plan holding the potential of delivering on the country’s food security needs, providing jobs and increasing our foreign exchange earnings.

“In spite this potential of the sector to deliver on this important matrix, credit to the sector has remained less than five per cent on bank lending for the past ten years severely hampering its development.

“The capital market has the capacity to unlock better access to credit and finance for the sector through innovative financing structures and products.

“This is also true for Nigeria’s abundant minerals, especially the solid ones.’’

Uduk regretted that solid minerals were dugged at subsistent basis and sold in markets around the world in disorderly manner.

“It is high time we created a market where they will be traded in an orderly manner to the benefit of the economy.

“A structured market for commodities will provide a fairer playing field for local market participants, while providing the required infrastructure for the international markets to be exposed to Nigerian commodities.

“It will also provide price discovery to market participants, producers and consumers leading to efficiency and better decision making,’’ she explained.

Uduk said the theme of the conference would be “Commodities Trading Ecosystem, Key to Diversifying the Nigerian Economy”.

She said the conference would gather relevant stakeholders in the commodities ecosystem to consider the most pertinent issues in growing the ecosystem in the country.

Ms Daisy Ekine, the Chairman, Technical Committee on Commodities Trading Ecosystem, said that no fewer than 300 stakeholders from the sector would attend the conference.