AFEX Commodities Exchange Limited has released the first edition of an annual commodity review for the Nigerian commodities market. The report, which is a first of its kind in Nigeria reviews the international and domestic landscape for key commodities in the Nigerian market. Key commodities reviewed include soybeans, maize, paddy rice, cocoa, ginger and sorghum. These commodities are considered in the report in line with the factors shaping global commodities markets, domestic commodity performance and strategies to beat the pack.
This review comes as the commodities market in Nigeria is deservedly gaining strength as more players get involved in a variety of activities along commodity value chains. This increased involvement has led to a growth in the value chains as players support more seamless transactions in the industry. Specifically, the agriculture sector in Nigeria has received significant attention in the last four years with all sub-sectors benefiting from the public, private and developmental investments in the sector.
Despite the massive growth in the sector, access to data and information about the sector remain out of reach for most Nigerians. AFEX has spearheaded the development and deployment of several knowledge solutions on the commodities market in Nigeria, especially through its market education platform, EdEX. Connecting players in the commodities market through readily accessible knowledge and data puts the sector on surer footing, enabling the development of scalable and sustainable structures.
AFEX’s Vice President, Financial Markets, Akinyinka Akintunde, said that the report was a reflection of AFEX’s continued commitment to educate the market and foster a culture of transparency for the commodities market in Nigeria.
“An annual commodity review allows us to look at the data points that we collect in the course of our work through the year, and arrange them in a way that helps the market understand the price dynamics in the commodities market and make informed decisions going forward. This enhances the efficiency and profitability of both Nigeria’s agricultural and financial sectors.”
In this edition of the AFEX annual commodity review, commodity prices in the domestic market followed earlier established trends with prices exhibiting the seasonal fluctuation that is characteristic of the commodities market. Still, the 2019/2020 marketing year has proven to be highly competitive showing off an increase in both the number and sophistication of the players participating in the markets. These key dynamics are explored in AFEX’s review of the Nigerian commodities market for 2019, providing a treasure trove of information for anyone looking for data and insights of the market from the past year.
The full AFEX Annual Commodity Review for 2019 can be accessed here.