Nigeria’s leading commodities market player, AFEX, has signed a partnership agreement with the Chartered Institute of Stockbrokers (CIS) to encourage and facilitate the development and dissemination of knowledge products on commodities trading among capital market participants.
The MoU signing ceremony which took place at the AFEX head office in Abuja on Tuesday, 8th March 2022 saw the two entities committing to the fulfillment of the mandate of the Securities and Exchange Commission (SEC) on investor protection and education.
The collaboration allows the creation and organisation of certificated courses on the commodities market as well as the commodities value chain ecosystem and allied sectors, which will be added to other Continuing Professional Development (CPD) Programs of the CIS Academy.This will allow for the emergence of certified commodity brokers, increasing the participation and level of activity of investors in the commodity market.
Speaking at the MOU signing event, AFEX’s Chief Executive Officer, Ayodeji Balogun, said the partnership would help in the development and expansion of knowledge on the commodities market and commodities backed securities.
“As a commodities exchange and a capital market player, we are able to educate and raise knowledge about the commodities trading ecosystem among CIS members and other capital market participants,” Balogunsaid.
According to Balogun, “Knowledge is a critical indicator of a thriving commodities exchange ecosystem.”
He said “AFEX and CIS are happy to be extendingthis vital resource of knowledgeto the larger market through this partnership.
“We will leverage our combined experience and knowledge to equip CIS members and other participants in the capital market with the necessary tools to make sense of agricultural asset risks, local and international commoditymarket trends, and other underlying factors that drive movements in the market.”
Balogun also expressed confidence in the partnership’s potentials to further close the gender gap in the commodities market, and in commemoration of the International Women’s Day, he announced a commitment by AFEX to sponsor the first 50 women who would be enrollees in the commodity market trainings developed by the two entities.
The President and Chairman of the Governing Council of the Chartered Institute of Stockbrokers (CIS) Nigeria, Olatunde Amolegbe, said, “we are glad for the solid footing AFEX has planted in the commodity market in Nigeria andthe exciting opportunities ahead for the inclusion of commodities as an alternative asset class in the portfolio of the clients.”
Amolegbe said that “Prior to now, the focus in the capital market has been on equities, bonds, shares and stocks but the ability to diversify client portfolios with an additional asset class such as commodities provides the needed diversification for the reduction of risks andcan enhance returns. So, for us as professionals in this industry, partnering with AFEX was a given.”
