With the total size of the commodities market in Nigeria projected to reach US$402.90 billion in 2023, Assetium Capital Management Limited, a commodities firm, is positioning to reshape and invigorate Nigeria’s dynamic commodities sector, which has consistently played a pivotal role in contributing to country’s GDP.
With over N300 billion capital base, the company said it aspires to emerge as one of the top three commodities companies in Nigeria by the year 2030.
Speaking during the company’s unveiling in Abuja, the chairman, Dr. Abubakar Koro Muhammad, said that with commodities consistently ranked among Nigeria’s top exports, Assetium Capital is poised to fortify and deepen the commodities industry in Nigeria, thereby becoming a significant contributor to the country’s GDP.
Dr. Muhammad noted that Nigeria experienced a remarkable phase of sustained and widespread economic growth, averaging over seven per cent annually between 2000 to 2014. This growth was the result of a confluence of favorable global conditions, astute macroeconomic policies, and pivotal structural reforms undertaken during this period.
However, the economy witnessed a deceleration in growth rates between 2015 and 2022 accompanied by a stagnation in GDP per capita. This unfortunate trend, he said, was driven by a combination of factors, including distortions in monetary and exchange rate policies, escalating fiscal deficits attributable to reduced oil production and the costs associated with a fuel subsidy program, increased trade protectionism, and external shocks such as the global COVID-19 pandemic. These challenges resulted in the deterioration of economic fundamentals, culminating in a persistently high inflation rate, reaching a 17-year peak of 25.8 per cent in August 2023
According to him, the Nigerian government has undertaken a proactive stance to attract and safeguard investments and market participants in the commodities sector with the Securities and Exchange Commission, establishing a dedicated commodity regulatory division, to organise, nurture, and oversee a structured commodities market.
“The Nigerian economy stands poised for resurgence, with an anticipated average growth rate of 3.4 per cent from 2023 to 2025. This rejuvenation is expected to be fueled by a combination of reform initiatives, a renaissance in the agriculture and services sectors, and the promise of increased government expenditure on developmental projects.
“At the heart of this impending economic renaissance lies the commodities industry, a sector that has consistently played a pivotal role in contributing to Nigeria’s GDP. In the year 2022, agriculture alone accounted for over 30 per cent of the nation’s GDP.