Agro commodity trade have undoubtedly played a crucial role in boosting the growth of Nigerian economic and other sub Saharan countries. It has created opportunity for investment in the commodities value chain. And as reviewed in the first part article, the policies and programs initiated for the positive expansion and development of the agricultural sector.
NATIPP is a program jointly launched by the African Export-Import Bank, Nigerian Export-Import Bank, and the Nigerian Export Promotion Council to facilitate the expansion of Nigeria’s trade and Investment into Africa. The Presidential Economic Diversification Initiative (PEDI) on the other hand aims to enhance trade capacity in Agriculture by facilitating new Investments in the Agricultural and Agro-allied industries, and also reducing regulatory bottlenecks, and enabling access to credit. The other policies and programs also have their aims and objective with the sole intention of fostering development and a better agricultural sector with a promising future.
Moreover, a structured commodity market consists of more than one participants which helps to form the agricultural value chain and they include commodity exchangers, farmers, merchants, aggregators, processors/producers, commodity market operators, warehouse operators, collateral managers, banks, insurance companies, clearing houses, and logistic companies. This structuring is essential, it helps to intensify competitiveness, efficiency, and growth which are building blocks for a strong enabling role in food security, employment
generation and economic diversity.
What is the importance of agricultural commodities?
The point is, commodities have the tendency to thrive or decline based on the demand from the public. Also, agricultural commodities are used to feed billions of people around the world.
On a final note, agro commodity trade has been contributing to foreign-exchange earnings in Nigeria and is used to promote other capital projects. The major contributor to the Nigerian external sector before the discovery of oil is “Agriculture”. There would be starvation in the world if agricultural commodities did not exist. Agro commodity trading in Nigeria is very lucrative and though, there is a lot of risks contained in this business that is why it is important to calculate/ evaluate your risks and strategize your marketing plan well.
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