Agricultural Product Derivatives - Nigeria

Nigeria

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$53.36bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.49% resulting in a projected total amount of US$60.33bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 14.75m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Nigeria is experiencing a notable shift in recent years.

Customer preferences: Customers in Nigeria are increasingly turning to agricultural product derivatives as a way to diversify their investment portfolios and hedge against market volatility. This trend is in line with the global movement towards alternative investments and risk management strategies.

Trends in the market: One of the key trends in the Nigerian Agricultural Product Derivatives market is the growing interest from institutional investors. As more institutional players enter the market, there is a corresponding increase in liquidity and trading volume. Additionally, technological advancements have made it easier for retail investors to access and trade agricultural product derivatives, further driving market growth.

Local special circumstances: Nigeria's agricultural sector plays a significant role in the country's economy, making agricultural product derivatives particularly relevant. The country's dependence on agriculture for both domestic consumption and export purposes creates a strong demand for risk management tools, which is fueling the development of the derivatives market.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the Agricultural Product Derivatives market in Nigeria. These include government initiatives to boost agricultural productivity, fluctuations in global commodity prices, and the overall economic stability of the country. As Nigeria continues to focus on diversifying its economy and reducing its reliance on oil revenue, the agricultural sector is poised for further growth, driving demand for related derivatives.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.