SEC Partners NAICOM To Derisk, Insures Commodity Assets

The Securities and Exchange Commission (SEC) has held discussions with the National Insurance Commission(NAICOM) towards de-risking and insuring certain commodity assets in a bid to attract more investments within the space, particularly, from the pensions industry.

This, it said, was part of measures to deepen the commodities ecosystem in the country.

The director-general of SEC, Lamido Yuguda, stated this while addressing journalists shortly after the second Capital Market Committee (CMC) meeting.

According to Yuguda, a technical committee was constituted comprising representatives of the Commission, Standards Organisation of Nigeria (SON), AFEX, Lagos Commodities & Futures Exchange (LCFE) and Nigerian Commodities Exchange (NCX) to deliver agro-based standards within three months.

To develop an effective price discovery mechanism for the commodities ecosystem, he said, his commission has equally solicited the support of the National Bureau of Statistics (NBS), adding that, a technical committee has been constituted for this purpose with the mandate of developing modalities for this exercise.

Meanwhile, the DG of SEC warned Nigerians against investing in Ponzi schemes, adding that, any investment schemes that promise unrealistic returns should be treated with caution.

He explained that, “Ponzi scheme is a fraudulent investment operation where the operator, an individual or organisation, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned through legitimate sources.”

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