IMPACT OF THE COMMODITY EXCHANGE ON THE EXPORT OF PRIMARY COMMODITIES IN NIGERIA FOCUS ON CASHEW

IMPACT OF THE COMMODITY EXCHANGE ON THE EXPORT OF PRIMARY COMMODITIES IN NIGERIA FOCUS ON CASHEW

ABSTRACT

This study was on focused on the impact of the commodity exchange on the export of primary commodities (Cashew) in Nigeria.  It aimed at finding out the effect price instability on export of primary commodities in Nigeria, finding out the extent of measures taken by the exchange in tackling price instability and finding out the level of effectiveness of the Exchange in promoting export of primary commodities.  In undertaking this study, the survey research design was adopted.  The population of the study was the 103 staff of the Abuja Exchange, with a sample size of 90 being determined.  Questionnaire was the research instrument that was used in the collection of data.  Data collected were presented and discussed descriptively while the hypotheses statements were tested using the Z-test statistics with the aid of the SPSS 17.0 statistical software.  The study revealed that price instability has an effect on the export of primary commodities in Nigeria, measures taken by the Exchange are effective in tackling price instability of primary commodities and the Exchange has been effective in promoting export of primary commodities.  The study recommended that the Commodity Exchange should fashion out proactive ways of ensuring that there is stability in the prices of primary commodities; the Exchange should work together with the farmers to ensure the quality of their primary commodities meet up with international standards, thereby resulting to a regulated and stable price regime; and the Exchange should put in more resources into research and development (R&D) which will enhance the production capability and quality of local output.