Price volatility and the Nigerian Commodity Exchange (NCX)

Much of the literature on economic development focuses on the various ways specific policies have been adapted to manage price volatility. While the core of this discussion has often revolved around Western assumptions, there is a noticeable gap when it comes to African commodity exchanges, their deep-seated patterns, and their role in addressing price volatility. The sheer scale of this heightened challenge deserves examination.

This policy note seeks to address this imbalance by concentrating on the functioning of the Nigerian Commodities Exchanges in mitigating price volatility. The note intends to underscore the potentially significant impact of price volatility and the interplay of factors influencing it. The findings carry far-reaching implications for development policies and should serve as a fundamental reference for policymakers interested in improving commodity exchanges across the continent.