CBN to inject N50bn into commodity exchange

The Central Bank of Nigeria (CBN) has said N50 billion has been approved for investment in the Nigeria

The Central Bank of Nigeria (CBN) has said N50 billion has been approved for investment in the Nigeria Commodity Exchange (NCX) which would be launched in 90 days after all approvals.

The CBN Governor, Mr Godwin Emefiele disclosed this on Thursday in Abuja during the inaugural meeting of the steering committee for the repositioning of NCX, also said the federal government has ordered a halt on the privatisation process of NCX so that it can be transformed to a world-class commodity exchange.

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The exchange will help to deliver value for Nigerian farmers and the economy. Emefiele said the stoppage of the privatisation process is among the basket of approvals obtained from President Muhammadu Buhari in a deft move to overhaul the NCX.

“That the current plan to privatise the NCX be stopped forthwith given the unfortunate arbitrage opportunities, which the government has noticed in the private-sector arrangement; which has become an obstacle in moderating food prices in Nigeria” he stated.

He said the steering committee has President Buhari’s approval to put in place the enabling structures and framework that would lead to the repositioning of the Nigerian Commodities Exchange into a commercially viable platform in Nigeria for delivering efficient pricing of Nigeria’s agric produce and add value to the economy.

“The revalidation of CBN’s 59.7% majority shareholding stake in NCX, to enable it to implement far-reaching measures, which includes reconstitution of NCX’s Board and Board Committees, the appointment of chairman by the CBN, and an investment of at least N50bn through the InfraCo structure,” he stated.