He claims that even though millions of Nigerians have been forced into poverty due to the country's slow economic growth, the country may still achieve its projected annual growth rate of 3.4% between 2023 and 2025 provided sufficient resources are allocated to the commodities sector.
This was said by Muhammad, the chairman of commodity broker/dealer Assetium Capital Management Limited, during a press conference held over the weekend in Abuja to introduce the company.
According to him, the company is well-positioned to make a significant impact as a major player in the commodities market. He also stated that the company is unwavering in its resolve to draw in investors looking for opportunities in the commodities space, make it easier for them to participate on authorized commodities exchanges, and investigate the enormous potential of the export market.
The expert remarked that Nigeria's economic trajectory has been marked over time by a number of noteworthy turning points and changes, and that the years 2000 to 2014 represent a critical turning point in this trip.
He said that Nigeria went through a notable period of broad, continuous economic expansion, averaging more than seven percent a year, during this time.
He claimed that a combination of advantageous international circumstances, wise macroeconomic decisions, and significant structural changes made at this time led to this expansion.
However, he stated that the years 2022 to 2015 tell a different story, with the Nigerian economy seeing a slowdown in growth rates along with a standstill in GDP per capita.
"A number of factors, including distortions in monetary and exchange rate policies, rising fiscal deficits attributable to lower oil production and the costs associated with a fuel subsidy program, increased trade protectionism, and external shocks like the global COVID-19 pandemic, contributed to this regrettable trend," he stated.
These difficulties led to a decline in the fundamentals of the economy, which in turn caused inflation to remain high and peak at 25.8% percent in August 2023—a 17-year high. This has made millions of Nigerians vulnerable to the grip of poverty, especially in light of the country's weak economic progress. Still, there's a ray of optimism peeking through the clouds.
The Nigerian economy is expected to develop at an average pace of 3.4% between 2023 and 2025, indicating that it is ready for a comeback.
A rebirth in the agriculture and services sectors, reform measures, and the prospect of higher government spending on development projects are all anticipated to contribute to this rejuvenation. The commodities business, which has constantly contributed significantly to Nigeria's GDP, is at the center of this upcoming economic rebirth.
He claims that in 2022, agriculture alone accounted for more than 30% of the country's GDP and that commodities have continuously been among Nigeria's top exports, with a variety of commodities making up the majority of the top 10 products.
"The Nigerian government has taken a proactive stance in recognition of the critical importance of this sector and the imperative to attract and safeguard investments and market participants," he continued.
The Securities and Exchange Commission has set out to create, manage, and oversee a structured commodities market in conjunction with the creation of a specialized division for commodity regulation.
"To ensure inclusivity and a coordinated approach to planning and implementation, this endeavor was supported by the painstaking creation of a comprehensive roadmap, spanning from 2018 to 2025, with the active involvement of all major stakeholders." This emerging potential has been grasped by a forward-thinking group of people.
According to Muhammad, the organization's main goal as a corporate body was to strengthen and expand Nigeria's commodities sector so that it could significantly boost the nation's gross domestic product.
"We are committed to providing our investors with real value and making sure that our shareholders receive healthy returns on their investments. Our goals are not limited to the near future; by 2030, we hope to be among Nigeria's top three commodities corporations," he continued.
According to Kelvin Ihongbe, a director on the board of the corporation, utilizing the commodities market's potential will guarantee food security in keeping with President Bola Tinubu's administration's pledge.
"You can't go wrong with commodity investment," he stated. We want to use this business to provide food security, employment for young people in Nigeria, and value for everyone's money. As you may have noticed, the president has also discussed the topic of food security. You can be sure that there will be food security with commodity investment.
Kunle Awoluyi, the company's chief executive, stated that the organization has established a risk management committee to guarantee that management is appropriately advised on each investment and risk taken.