Good News as Nigeria Launches First Commodities Auction Market
- Nigeria has launched its first commodities auction market partnering Traders Association and the Lagos Commodities and Futures Exchange
- It is expected that this project will alter trade procedures and align them with global standards
- A significant step in raising local trade to international standards is the launch of the Lagos auctions market
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Lagos Commodities and Futures Exchange (LCFE) and the Mile 12 International Market Traders Association have partnered to launch Nigeria's first commodities auction market.
Source: UGC
This project is expected to change trade processes and bring them into compliance with international norms, according to a statement from LCFE.
The program, which is based on Zimbabwe's successful auction system, will prioritize quality control, controlled trading, and transparent price discovery.
A structured trading environment, market expansion, financial inclusion, and the installation of a cold storage facility will be among the partnership's main goals.
The Guardian rported that consumers will profit from better products at competitive costs, traders will get access to wider markets and tools for quality assurance, and food supply will be improved.
The opening of the Lagos auctions market, according to LCFE Chief Executive Officer Akin Akeredolu-Ale, is a big step in bringing local trade up to international standards and supporting Lagos State's goal of becoming a hub for international trade.
“We aim to ensure that goods reaching consumers are of the highest quality. To achieve this, we have developed guidelines for packaging and quality control, providing producers with the necessary tools to meet these standards.
“This effort aligns with our broader strategy to transition local markets from a domestic focus to international trade readiness”, he stressed.
According to Akeredolu-Ale, the involvement of associations and market leaders demonstrated how willing traders were to adopt structured trading methods.
He addressed worries about some market participants' poor reading levels by pointing out that the project was intended to improve rather than disturb current market operations.
The LCFE CEO said,
“These markets have functioned effectively for decades. Our role is to modernize and scale their operations by introducing templates for quality control, packaging, and access to broader markets.
“The auctions market will provide a dedicated trading day, every Wednesday, for structured transactions, ensuring high-quality products are available at competitive prices. The initiative will also preserve traditional market days while introducing a specialized platform for regulated trading, enabling participants to expand their reach to international markets”.
Similarly, Chairman Mile 12 market, Alhaji Shehu Usman, highlighted the association’s role in addressing food accessibility and post-harvest losses, stressing the importance of continuous education to drive acceptance.
Electronic matching system for FX transactions kicks off
Legit.ng reported that the Central Bank of Nigeria (CBN) has launched its new Electronic Foreign Exchange Matching System (EFEMS).
The EFEMS would streamline foreign exchange transactions in the Nigerian foreign exchange market.
The EFEM would ensure that authorized dealers only utilize the CBN-approved platform for all foreign currency transactions, according to Omolara Duke, Director of the CBN's Financial Markets Department.
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Source: Legit.ng
