Lagos - The Nigeria Commodity Exchange (NCX), formerly known as the Abuja Commodities and Securities Exchange, will launch a pilot electronic warehouse receipt system (e-WRS) on July 10.
This was made known at a press conference in Lagos by the Managing Director and Chief Executive Officer of NCX, Yusuf Abdurrahmin, Managing Director and Chief Executive Officer Bank of Agriculture, Dr. Mohammed K. Santuraki and the Chief Executive Officer, Stanbic IBTC Holdings Plc, Sola David-Borha.
Stanbic IBTC is one of the banks collaborating with the Central Securities Clearing System (CSCS), Bank of Agriculture and the Federation of Agricultural Commodity Association of Nigeria (FACAN), on the project.
The new platform, Abdulrahman explained, will enable farmers to place their commodities at an NCX-accredited warehouse in different parts of the country and will be issued an electronic receipt stating details such as commodity type, quality and quantity, owner and other relevant information.
The depositor will have the choice of using the receipt as collateral to obtain bank loans or for trading on the exchange.
Another option is to keep such commodities in the warehouse until their prices stabilize or appreciate.
Apart from ensuring liquidity on the exchange, Abdulrahman stated that the initiative will encourage the provision of standard storage facilities for operators in the agricultural value chain and make the warehouse receipts a prime tool of trade while facilitating access to finance.
According to Sola David-Borha, “The commodity exchange and the warehouse receipt system will be instrumental in opening up Nigeria’s farm produce to the global commodity market.
"The transparency it will engender is crucial in ensuring participation from across the world.
David-Borha stated that the bank “aims to become one of the top agriculture financing banks in Nigeria.
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