NCP approves privatisation process for Abuja Commodities Exchange

The National Council on Privatisation has approved the commencement of the privatisation process of the Abuja Securities and Commodities Exchange.
This was contained in a statement issued Chigbo Anichebe, Head, Public Communications, Bureau of Public Enterprise, on Sunday in Abuja.
The statement stated that a steering committee, headed by the Minister of Industry, Trade and Investments, Dr. Olusegun Aganga, had been formed for the privatisation process.
The statement said: “A privatised ASCE would provide stable prices and a sure market for all agricultural produce locally and internationally as well as guarantee employment for millions of Nigerians and provide raw materials for industrial production.
“The constitution of the steering committee was one of the high points of the third meeting of the NCP in 2013 which held on Thursday, May 9, 2013 in the Presidential Villa, Abuja.
“The Steering Committee was set up with a view to identifying the best options for resuscitating the exchange.
“Other members of the Steering Committee are the Coordinating Minister of the Economy and Minister of Finance; and Ministers of National Planning, Agriculture and Rural Development and Communication Technology.
“Others are the Governor of Central Bank of Nigeria; the Director General of the Bureau of Public Enterprises​ and the Director General of the Securities & Exchange Commission.”
The statement pointed out that ASCE had witnessed various operational challenges arising from inadequate equity base, impairment of shareholders’ funds arising from operating losses, lack of sector infrastructure such as standardised silos and warehouses to store commodities and generate the warehouse receipts that could be traded on the exchange.
Others are the absence of enabling laws to guide the operation of Warehousing Receipt System and the lack of patronage by private organisations and relevant government agencies.
The statement stated that after extensive deliberations, the NPC adopted core investor privatisation as the strategy for revitalising the exchange.
The statement said further: “The BPE has commenced work to ensure that the privatisation of ASCE is implemented in a manner that meets the objectives of the Federal Government in order for the exchange to enjoy sustainable growth and add value to the Gross Domestic Product.
“Key to the strategy is fast-tracking the passage of the Warehousing Receipt System Bill.
“The WRS Bill was approved in 2010 by the Federal Executive Council and is aimed at identifying and harnessing storage facilities across the country to aid the operations of a privatised ASCE.”
The NCP also noted the importance of engaging stakeholder-agencies and development partners in vital discussions on the necessary reform processes and strategy for the privatisation of the exchange.