The Minister of finance, Budget and National Planning, Zainab Ahmed, has described the Nigerian capital market as a key catalyst for the development of the critical sectors of the economy.
Ahmed made the description during a webinar organised by the SEC in collaboration with the Ministry of Solid Minerals Development with the theme, “Financing the Solid Minerals Sector through the Capital Market and the Critical Role of Commodity Exchanges”
The minister said the facilitation of funding and provision of structured market platforms such as the commodities exchanges portends significant addition for the mining and solid minerals sector.
According to her, “Given the economic challenges occasioned by the COVID-19 pandemic, the ongoing efforts of the Federal Government to achieve economic diversification has been affected by a decline in revenue, underlined by volatility in global oil prices which is our main source of foreign exchange earnings.
“The mining sector is strategically based as alternative source for revenue generation in the economic diversification plan of the Federal Government of Nigeria.
“It also has the potential to create employment and develop rural settings for other benefits. The mineral export guidelines by the Federal Government was formulated to address the need to keep accurately mineral trade data, ensure effective monitoring of the evacuation of export proceeds, to optimise the collection of royalties, and facilitate the implementation of free shipment inspection policies of the Federal Government on each export transaction as this is international best practice in line with the Marrakesh Protocol of GATT 1994. “
Ahmed explained further that the initiative of employing the commodities exchange in this regard will encourage responsibility accounting and fairness to governance.
She said: “Identified as one of the frontiers of opportunity in the new economic reality, the Nigerian commodity trading eco system serves as the core point which support and accelerate the development of non-oil commodities, which will be complimentary by ongoing efforts to diversify the national economy.
“Inefficient linkages of buyers and sellers in sufficient schemes will possess the capacity to proffer solutions to some of the fundamental challenges inherent in the mining sector.
“Streamlining the operations of the mining sector therefore through the commodities trading eco system and through other initiatives will ensure proper regulation of solid minerals extracting industry in Nigeria.
“I am positive, that the outcome of this webinar and the strategic partnership between the mining sector and the capital market community will enhance the competitiveness of our new non-oil commodities and compliment the economic diversification of the Federal She assured of the unwavering support of the Federal Ministry of Finance, Budget and National Planning to ensure the achievement of the overarching objective of the Federal Government to develop the mineral potentials of the country.”