Understanding the Roles of the Nigerian Airport Authority

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Nigerian Airports Authority

The Federal Airports Authority of Nigeria (FAAN) was established under the FAAN Act of 1996, replacing the Nigerian Airports Authority.

Functions of the Federal Airport Authority of Nigeria (FAAN)

1. The development, provision, and maintenance of essential services and facilities for air transport.
2. Ensuring suitable conditions for the transportation of passengers and goods by air, as well as the commercial use of aircraft.
3. Providing accommodation and other necessary facilities for the efficient handling of passengers and cargo.
4. The development and provision of facilities for surface transportation within airports.
5. Conducting economic and commercial activities at airports, either directly or through agents, regardless of their direct relevance to air transport.
6. Ensuring the availability of adequate facilities and personnel to maintain effective security at all airports.
7. Establishing conditions that support the growth of air transport and related services.

Nigerian Ports Authority  

This federal government agency is responsible for overseeing and managing the country’s seaports, including providing necessary facilities and maintaining control.

Functions of Nigerian Ports Authority

1. Developing, owning, and operating ports and harbours.
2. Providing safe and navigable waterways.
3. Facilitating cargo handling and storage services.
4. Maintaining port facilities and equipment.
5. Ensuring safety and security at ports.
6. Developing and owning property.

Nigerian Export Authority

Nigerian Export Promotion Council (NEPC)

The Nigerian Export Promotion Council (NEPC) was established under the Nigerian Export Promotion Decree No. 26 of 1976. Its mandate includes:

1. Promoting the development and diversification of Nigeria’s export trade.
2. Supporting the growth of export-related industries in Nigeria.
3. Leading the creation of suitable export incentives.
4. Advocating for and facilitating the implementation of Nigeria’s export policies and programmers.

Functions of the Nigerian Export Promotion Council (NEPC)

1. Export Development

The NEPC aims to diversify the economy’s export base by identifying potential products for export. It also provides guidance to exporters on:
a) Packaging, product design, and modification.
b) Compliance with quality standards.
c) Effective market entry strategies.
d) Pricing and cost considerations for exports.

2. Export Financing and Incentives

The NEPC ensures the efficient administration and timely disbursement of incentives to eligible exporters. It also reviews existing incentives and develops new ones to enhance export activities.

3. Capacity Building for Exporters

The council conducts seminars and workshops to educate exporters on emerging trends and organises export forums to discuss recent developments in the sector. It also provides tailored training programmes for staff in export-oriented industries.

4. Collaboration with Multilateral Institutions

The NEPC partners with trade promotion organisations in other countries and engages with global trade institutions such as the International Trade Centre (ITC), World Bank, and United Nations Development Programme (UNDP) to maximize Nigeria’s trade benefits.

Commodity Exchange

A commodity exchange is an organisation that facilitates the buying and selling of tradable commodities by providing necessary structures and systems. These include:

i) Physical Infrastructures, such as trading floors, communication facilities like phones, and systems for price reporting and dissemination.

ii) Electronic Trading Networks, that enable remote trading through digital platforms.

iii) Organisational Framework, that connects commodity traders, warehouse operators, clearing house members, and other stakeholders to coordinate and conduct trading activities.

iv) Regulatory Framework, including a comprehensive set of rules, regulations, and by-laws that ensure structured commodity trading. This covers pricing, grading, measurement, standardisation, warehousing, clearing, and the delivery of traded commodities.

Types of Tradable Commodities

The categories of assets and commodities that can be traded on a commodity exchange include:

i) Unprocessed Agricultural Products, such as grains, fiber, cassava, livestock, and meat.

ii) Energy Resources, including crude petroleum oil and natural gas.

iii) Solid Minerals, particularly base metals like gold, zinc, silver, platinum, and iron.

iv) Foreign Currencies, such as the US dollar (USD), British pound (GBP), and Euro (EUR).

v) Equity Securities, including individual company shares.

vi) Interest Rates and Stock Indices, such as the All Share Index of the Nigerian Stock Exchange.

vii) Bonds and Debt Instruments, especially those issued by the central government, including money market instruments like treasury bills.

Requirements for Trading

The requirements for trading include:

Registration

Traders might be required to register with the commodity exchange and adhere to any necessary registration procedures or provide required documentation.

Membership

Certain exchanges may mandate traders to either become members or establish a membership arrangement with a registered broker or trader who is already a member.

Financial Resources

Traders are often expected to prove they possess sufficient financial resources to engage in trading, such as meeting margin requirements or keeping enough funds in their trading accounts.

Compliance

Traders must follow the rules, regulations, and code of conduct established by the commodity exchange, ensuring they meet all legal and regulatory obligations.

Grading System

In commodity exchanges, the grading system is used to evaluate the quality and characteristics of the traded commodities. This process is typically carried out by qualified inspectors or experts who assess factors such as size, weight, moisture content, colour, purity, and other relevant attributes specific to each commodity.

Warehousing

Warehousing is essential in commodity trading, as commodities traded on exchanges often need proper storage. Warehouses are tasked with receiving, storing, and protecting the commodities until they are ready for delivery or further processing.

These facilities must ensure that the appropriate storage conditions are maintained.

Clearing System

The clearing system is an essential part of commodity exchanges, handling the clearing and settlement of trades. Once a trade is made, the system ensures that both the buyer’s and seller’s financial responsibilities are fulfilled.

It verifies trade details, reconciles positions, calculates margin requirements, and manages the transfer of funds and commodity ownership between the parties involved.

Standardizing

Standardizing is the process of setting uniform rules, specifications, and contract terms for commodity trading. It ensures that contracts for a specific commodity have consistent terms, including quantity, quality, delivery conditions, and pricing structures.

Read more: Introduction To Commerce (Scope, Characteristics & Functions)