COMMODITY BOARDS ACT

What Is This Policy?

This Act establishes commodity boards for key agricultural export commodities in Nigeria, giving the boards authority to regulate the purchase, processing, grading, storage, and export of their assigned commodities.

Who Does It Target?

Farmers producing cocoa, cotton, groundnuts, palm produce, rubber, and other commodity board crops Licensed buying agents and produce merchants Exporters of commodity board produce

What Does It Aim to Achieve?

To stabilise and improve the income of Nigerian farmers who produce export commodities by regulating the marketing chain, enforcing quality standards, and ensuring fair prices throughout the commodity value chain.

Key Features

Commodity Board Structure: Establishes separate boards for each major agricultural export commodity, each with its own management and regulatory mandate Licensed Buying Agents: Requires all entities buying produce from farmers to hold a valid commodity board licence Quality Standards Enforcement: Grants boards authority to set and enforce grading and quality standards for produce at all stages from farm to export Price Stabilisation: Provides boards with tools to moderate price volatility for farmers by managing purchasing prices and buffer stocks Export Coordination: Coordinates the export of board produce to ensure consistent quality and market access for Nigerian agricultural commodities

Current Status

Rollout Stage: In force; most marketing functions now partially liberalised but boards retain regulatory roles Coverage: Nationwide; coverage varies by commodity and producing region Funding: Commodity board levies, federal government appropriations, and trading margins

How to Access

Produce buyers and merchants dealing in board commodities must obtain a licence from the relevant commodity board. Licence application submitted to the relevant commodity board Evidence of financial capacity and storage facilities Payment of prescribed licensing fees Application method: Relevant commodity board offices; Federal Ministry of Agriculture for oversight matters

Official Resources

Website: www.fmard.gov.ng

Legal Framework

Enacted under the legislative powers of the National Assembly as the Commodity Boards Act (Cap C24 LFN 2004). Operates alongside the Nigerian Export Promotion Council (NEPC) Act, the Produce Inspection Act, the Standards Organisation of Nigeria Act, and the Agriculture (Control of Importation) Act. Aligns with the WTO Agreement on Agriculture, the ECOWAS Agricultural Policy (ECOWAP), and FAO guidelines on commodity price stabilization.