Business

SEC, SON harp on standardisation of commodities to boost GDP

Published

3 years ago

November 9, 2021

The Securities and Exchange Commission (SEC) has stressed the need for standardisation of the country’s commodities to enhance global acceptance and boost the Gross Domestic Product (GDP).

The Director-General of SEC, Mr Lamido Yuguda, said this at the Commodities Standards Sensitisation workshop organised by the commission in partnership with the Standards Organisation of Nigeria (SON) on Monday in Lagos.

Yuguda said that the Federal Government drive to achieve a sustainable diversified economy would be achieved by ensuring adherence to standards to boost the country’s competitiveness in the global market.

According to him, the establishment of relevant standards will significantly transform the Nigerian commodities trading ecosystem.

“As Nigerians strive to achieve a sustainable diversified economy, given the current drive to guarantee food security, there is an urgent need for more complementary comforts from the government, regulators and critical stakeholders to ensure the approval and effective adoption of appropriate local standard benchmark against the international practice to establish quality and reverse the unwarranted situation of perennial rejection of the Nigerian produced commodities,” he said.

Yuguda, represented by the Executive Commissioner Operations, SEC, Mr Dayo Obisan, said the unique feature of the commodities exchanges globally was the standardisation of the commodities traded on the platform.

He noted that each commodity traded on the exchange was graded by quality, size, weight and other criteria.

Yuguda said that the determination of these grades and standards was dependent upon improved local standards which would take into cognizance internationally accepted standards.

He noted that SON had the statutory responsibility for standard-setting in Nigeria.

In recognition of this fact, he said that the Executive Management of the Commission, on behalf of all stakeholders, engaged with the management team SON, to ensure the expedited approval and publication of standards commodities.

He observed that the establishment of relevant standards would significantly transform the Nigerian commodities trading ecosystem.

“Sequel to that engagement, the ecosystem roadmap implementation committee comprising key stakeholders has been working on the development of grading and standardisation system.

“The initial stage of the development process will concentrate on the delivery of standards for agricultural commodities,” he said.

The director-general disclosed that SEC was working with SON to create awareness for existing agricultural commodities standards.

“We strongly believe this is a project of national importance, given that commodities exchange value chain has significant value and can transform our economy.

“It is, therefore, my expectation for this workshop and other stakeholders’ engagement to serve as a rallying point for inclusive standards development process.

“As the ecosystem is driven towards standardisation, the broader society will be impacted for greater prosperity,” he said.

Yuguda recalled that SEC, as part of the implementation of the 10-year capital market master plan, constituted a technical committee in the commodities trading ecosystem.

He said that the mandate of the committee was to identify challenges with the existing framework and develop a roadmap for a vibrant ecosystem.

In his remarks, SON Director-General, Malam Farouk Salim, said that the organisation was willing to collaborate with relevant stakeholders.

He said that this was to ensure that the development of standards follow the best international principles of standard development.

Represented by Dr Omolara Okunlola, Head Food Group, Salim said the organisation, in line with its mandate, would continue to promote standards and ensure it followed international principles.

He said that SON would continue to promote the confidence of Nigerians in Nigerian produce and ensure that SON in line with the Federal Government various policies were developed in such areas.

“For the first time in history, we have the strategy already outlined under the Nigerian National Standardisation Strategy. If you go through the strategy, you can see we have listed out standards to be developed.

“Under the agriculture, we have energy, transport, industry, a focus on SMEs, we also have for the health sector.

“The strategy is a living strategy, as policies from the government come up, we try to update the strategy,” he said.

Speaking on the rejection of Nigerian produce outside the country, Salim said that rejection of produce was not due to lack of standards but non-compliance to standards.

“If you want to export any produce, try to contact SON; we have 42 offices presently in Nigeria.

“So, when you get to know what you really need in relation to that product you want to export, it will reduce rejection.

“Our standards are based on international best practices, we are custodians of the standards but standards are developed by the populace, not by us.

“We are just given the mandate to be in the custody of those standards, make sure that when you want to develop it, get everyone, as many people that are interested, as many stakeholders we can identify, we contact them and we follow those principles,” Salim added.

He listed the principles as transparency, openness, stakeholders involvement and consensus.

The Chairperson of the Commodities Trading Ecosystem Implementation Committee, Ms Daisy Ekineh, also spoke at the event.

She said that with the strong global push for green economies and net-zero carbon emission, the era of fossil fuel in powering development was fast coming to an end.

Ekineh explained that for an oil-dependent economy like Nigeria, “it is a race against time to effectively diversify the economy.”

She said there was no doubt that efforts were ongoing in this direction as evidenced by the various policies and programmes of government and the increasing contribution of the non-oil sectors to GDP which now exceeds 90% of GDP.

“The progress is commendable. Nonetheless, efforts need to be invigorated to speedily diversify the economy in all respect, for while the oil sector has shrunk in its contribution to GDP, it remains quite dominant in foreign exchange receipts and export trade.

“The economy is in other words, still mono-product in some respect and significantly lacking in export diversification.

“The nation’s import requirements, its foreign reserve build-up and budget funding are still largely dependent on crude oil receipts.

“This is clearly not sustainable and a major risk factor of the economy; being vulnerable to the vagaries of the global oil market.

“The solution lies in the development of non-oil commodities like agriculture and solid minerals which can have a significant multiplier effect on the economy.

“If well developed, these sectors can provide steady industrial raw materials, create jobs, bolster export earnings and reduce demand for foreign exchange and generally facilitate industrial development, particularly the manufacturing sector,” she said.

Ekineh said the value chain for the commodities sector was quite huge and each aspect of the chain, creates its own sub value chain which in itself could significantly impact the economy.

She, however, said that the nation could not optimally develop the commodities sector and its export trade without setting acceptance standards and grading for tradable commodities, be they for industrial use, export or otherwise.

Ekineh added that such standards should be reviewed periodically and aligned with global best practices for international acceptability and export promotion.

“Standards and grading create trust, provide safety assurance and promote the integrity of the commodities market/sector as participants know exactly what the quality of a commodity is and can, without doubt, purchase particular grade of commodities which suit their purpose. In other words, they know and have the assurance of what they are buying” she added.

One of the participants, Mr Mohammed Awami, Head of, Trade Finance Department, Nigerian Export-Import Bank (NEXIM), said that the importance of standards could never be overemphasised.

“Standards setting are very important, without good standards, market access becomes very challenging, ” Awami said.

He commended SEC and SON for organising the workshop aimed at enhancing economic growth and development. (NAN)

Related Topics:Accessmagazine Accessnews commodities GDP NewsUpdate SEC SON standardisation

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Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa

Published

3 weeks ago

October 28, 2024

Matthew Eloyi

Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.

The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.

Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.

The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.

Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.

A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.

He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.

This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.

“We must invest in power because it is the biggest determining factor for industries to thrive.

“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.

“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.

Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.

He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.

A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.

Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.

He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.

“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.

Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.

Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.

He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.

“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.

“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.

Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.

He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.

Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.

“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.

While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.

In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.

This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.

“It empowered the state houses of assembly to enact laws on power.

“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.

“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.

According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.

“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.

“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.

Business

Mercedes urges delay of EU tariffs on Chinese electric vehicles

Published

1 month ago

October 21, 2024

Matthew Eloyi

Mercedes urges delay of EU tariffs on Chinese electric vehicles

The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.

“We need more free trade instead of new trade barriers.

“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.

“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.

At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.

Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.

The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.

But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.

The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.

Business

ACCI moves to promote business connections, balance work-life

Published

1 month ago

October 16, 2024

Matthew Eloyi

ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.