According to the governor, this was part of the outcomes of a recent high-level meeting he and some of his commissioners had with the management team of the bank in Abidjan, Côte d’Ivoire.
A statement signed by his media aide, Mr. Muhammad Bello, said the governor made this known at the closing of a three-day training for budding entrepreneurs in the state recently, adding that his administration was dedicated to supporting indigenous farmers.
The realisation of the plan will make such an establishment the 15th of its kind in Africa and the fourth in the country after the Abuja Securities and Commodity Exchange, Lagos Commodities and Futures Exchange, and AFEX Commodities Exchange Limited.
It could also be traded on interest rates, foreign exchange futures, freight contracts instruments and environmental instruments.
According to the statement, Mr. Tambuwal revealed that, “during our visit to the AfDB, we had engagements with them and agreed that an Onion Commodities Exchange will be established in Sokoto with the help of the bank on the framework and technical support.”
He said the potential for onions trade abounds in the state, thus putting it in the topmost position of states cultivating the commodity in the country.
He cited an example of an individual in Abidjan, who transacts over N2.8 billion onion trade annually from Sokoto-Côte d’Ivoire, elaborating that the result of a survey he commissioned has revealed that from onion trade alone, the state engages in an annual transaction of between N250 and N300 billion.
In economic parlance, trading in exchanges includes derivatives contracts, such as forwards, futures, options and spot trades- focusing on immediate delivery.