An Evaluation of the Abuja Commodity Exchange Model for Agricultural Marketing and Market Development in Nigeria

Abstract

This study aims at evaluating the current model of Abuja Commodity Exchange for agricultural marketing and market development in Nigeria. This is done to be able to determine whether the operational functions and structural systems of the Exchange are environmentally favourable and yielding to solve the problems of agricultural marketing in Nigeria. More so, to increase the production and productivity of raw materials needed by the local industries from the agricultural sector and possibly advance to regional and international trade. Besides, the study aims to identify the following: (i) Whether a centralized Commodity Exchange will enhance the performance of the Exchange. (ii) Whether there are effective communication systems for the dissemination of market information to those who need them. (iii) Whether there is relationship between adequate infrastructural facilities and other facilitating institutions for effective operation of the Exchange. To this end, data were sourced from both primary and secondary sources. The primary sources were through the use of research instruments such as structured questionnaire and interview. On the other hand, the secondary sources were through the use of textbooks, journals, articles and publications from the Abuja Commodity Exchange. The population used for the study was 105 respondents out of which 87 respondents were found useful for the study and this cut across the staff, buyers and sellers of the exchange. However, the findings reveal that the Exchange is still in the infancy having existed for only seven years. Therefore it is yet to spread its tentacles to some environmentally compelling areas deeply such as the areas of dissemination of market information to the producers of agricultural produce, extension of warehouse facility to the grass root level where the producers of agricultural produce can have close proximity to them and as well lack of weather forecast service to the farmers to enhance production and productivity. Above all, Abuja Commodity Exchange is not specific to agricultural commodities alone and this creates a problem for specialization to enhance efficiency. This is a major setback because the nation lacks the necessary infrastructures and human resources to make centralization work at this moment.