Commodities Exchange to add N15tr to GDP from agric

Chief Executive Officer, of AFEX Commodities Exchange, Ayodeji Balogun said agriculture’s contribution to Gross Domestic Product (GDP) would hit N15 trillion as the Federal Government promotes regional commodities exchange.

Balogun said an increase in agriculture export earnings would hit $1.5 billion.

He said there was much revenue to be made as the government pursues an enabling environment to boost agri-food products export to destinations in the European Union (EU), United Kingdom, United States, China, and the rest of the world, adding that with the traceability that will be provided by regional commodities exchange, exports will increase in value and volume.

With the government set to unveil the regional agro commodities exchange policy direction, Balogun said so much would be achieved to support farmers in the transition towards a sustainable and resilient agricultural sector including investments to make living and working in rural areas more attractive, aiming to create at least 20 million jobs.

He said: “Twenty million jobs will be created. Additional food production of 10 million metric tonnes (Mt) will push food production from 40 million to 50 million Mt.”

To achieve a truly resilient food system, he urged the government to tackle the issues that have continued to affect farming communities and to provide them with stronger tools to deliver sustainable food security for society.

He x-rayed the sector’s outlook in terms of indicators such as self-sufficiency rates, net trade, and diversification of exports, adding that so much has to be done to enable Nigeria to remain self-sufficient in key staples such as rice to generate surpluses, which contribute to the national food supply.

He urged the new administration to embark on reforms toward providing abundant, high-quality, safe and nutritious food to the nation and globally.

According to him, strengthening the competitiveness of Nigeria’s export required reforms and investments that go beyond the narrow realm of industrial and trade policies.

He said considerable scope existed to diversify and add value to the nation’s agri-food export basket to new destinations while underscoring the importance of trade policy to the sector’s continued growth.

He continued that Nigeria’s future growth trajectory will be well served by a continued pursuit of open trade and investment policies and by sustained efforts at building a more competitive, inclusive, and resilient economy.

To this end, he called for increased partnerships with private sector firms to increase trade and investment across the country. According to him, such partnerships will generate huge earnings in agricultural exports, as well as unleashing innovative technologies and business models that will improve the livelihoods of millions of smallholder farmers across the country.