SEC, PenCom To Collaborate On Deepening Commodities Sector

The Securities and Exchange Commission(SEC) has expressed its readiness to collaborate with the National Pension Commission(PenCom) on areas that would assist in further deepening the commodities ecosystem.
Director general of SEC, Mr. Lamido Yuguda, stated this when the management of the commission along with the Lagos Futures and Commodities Exchange held a meeting with PenCom in Abuja.
Represented by the executive commissioner, Corporate Services of the SEC, Mr. Ibrahim Boyi, stated that, SEC is very passionate about the commodities sector as it has enormous benefits for the economy of the nation.
According to him, one of the key pillars of the Capital market Master Plan is the development of the commodities ecosystem which gives the nation the opportunity to diversify both the capital market and the economy and also create more products.
He said, SEC is seeking collaboration with PenCom to ensure economic development adding that the sector has huge potentials if optimally developed.
The managing director of Lagos Commodities and Futures Exchange (LFCE), Mr. Akin Akeredolu-Ale said, the commodities exchanges are interested in exploring avenues for investing pension funds in the capital market.
According to him, “the primary part of our economic raw materials in crude oil, if you don’t capitalise the primary sector, the manufacturing sector will suffer, same as the service sector.
visions for the PFAs to invest in the commodities sector and this is expected to catalyse our economy and spur growth.”
Akeredolu-Ale reassured that the reflation of the assets under management is going to benefit people that have their assets as globally pension assets are used to stimulate economies,adding that, the nation’s economy needs to be activated to create opportunities for pension assets to participate in the exchanges.
He urged PenCom to look into its rules and encourage Pension Fund Administrators(PFAs) to develop and interest in investing in commodity assets on the commodities exchanges like LFCE.
The managing director of Lotus Capital, Mrs. Hajara Adeola said the commodity space is very central to the progress and development of Nigeria’s economy and it is important the entire financial system participates as it is developing globally.
“The capital market is creating instruments, creating avenues for investments to grow the market and the economy. It is important we put these infrastructures in place to make it profitable for our nation,” she said.
Also, the commissioner, Technical, PenCom, Mr. Anyim Nyerere said, the Pension laws are not static but dynamic, adding that, the commission expects a comprehensive request to enable it expedite actions on the matter.
He expressed the desire of PenCom to work with relevant agencies to boost the economy and assured the SEC that PenCom will work within available laws to support the commodities trading ecosystem.