The Nigeria Commodity Exchange(NCX) was originally incorporated as a Stock Exchange on June 17, 1998. It commenced electronic trading in securities in May 2001 and was converted to a commodity Exchange on August 8, 2001 and brought under the supervision of the Federal Ministry of Commerce.The conversion was premised on the need for an alternative institutional arrangement that would manage the effect of price fluctuations in the marketing of agricultural produce which has adversely affected the earnings of farmers since the abolishment of commodity Boards in 1986.
The Exchange will be of immense benefits to farmers, agro-commodity processors and merchants, as it will serve as a veritable platform for them to mitigate the inherent risks in agricultural production and marketing. The enlarged market for agricultural produce, which the NCX will engender, shall promote commercial farming and the growth of the agricultural sector.The Exchange will start operations in spot and forward markets and gradually introduce trading in warehouse receipts and eventually evolve into a futures market trading commodity futures and options.
It will trade contracts in agricultural produce, solid mineral products, energy, financial indices and currencies.The Exchange will commence spot trading on agricultural commodity contracts in July 2006 and later in the year launch spot trading on solid mineral contracts.
Head Office (Nigeria Commodity Exchange)
2nd Floor Bank of Agriculture Plaza,
180 Independence Ave,
Central Business District,
Abuja