COMMODITY EXCHANGE, DIVERSIFICATION AND INVESTMENT IN NIGERIA
COMMODITY EXCHANGES SPUR DIVERSIFICATION AND NEW INVESTMENT WINDOWS IN NIGERIA The prospective combined strength of Abuja and Lagos Commodity Exchanges excites investors’ interests, a phenomenon that will stimulate deployment of funds into commodities marked for aggregation into warehouses and siloes across the country. Trading activities will be focused on Commodity Exchange contracts consisting of various trades; spots, forwards, futures and derivatives. Financial returns will revolutionize agricultural and natural resource sectors of the Nigerian economy. Understanding the procedures for investing on the Commodity Exchange platform stimulates investors’ desire to trade through the mechanism. Forwards are aimed at taking risk positions that are speculative in nature. Commodities traded on the Exchange are targeted while a Clearing House acts as intermediary that implements settlements arising from transactions. Margin payment establishes commitme...