Gbenga Awe, Group Head, Structured Trade and Commodities Finance at The Alternative Bank, has revealed that smallholder farmers and agricultural small businesses in Nigeria have faced long-standing challenges, including limited access to capital, high post-harvest losses, and unfair market prices.
To address these issues, The Alternative Bank has partnered with the Nigeria Commodity Exchange (NCX) to create a system that will make trading easier and more beneficial for farmers and commodity dealers.
The partnership is designed to provide structured financing opportunities through the introduction of electronic warehouse receipts.
According to Awe, “This partnership is a step towards rewriting the narrative for Nigeria’s commodity value chain. For far too long, smallholder farmers and agri-SMEs have been trapped by poor access to capital, post-harvest losses, and unfair price pressures. What we are building with NCX is a structure that allows them to hold on to value, trade on their own terms, and grow sustainably.”
He stated that the electronic warehouse receipt system allows farmers to store their produce in certified warehouses and receive receipts that can be used as collateral for financing.
This means they do not have to sell immediately after harvest, often at low prices, but can wait for better market conditions.
In his remarks, Managing Director of the Nigeria Commodity Exchange, Anthony Atuche, explained that the goal is to create a more efficient and inclusive market.
“Our mandate at NCX has always been to create a transparent, efficient, and inclusive commodities market that works for everyone, especially producers.
“This partnership with The Alternative Bank is a major leap in that direction,” he said.
He added that by facilitating financing through electronic warehouse receipts, the initiative is helping to improve price discovery, reduce the need for distress sales, and create the groundwork for a more organised and reliable trading system.
The collaboration also supports the government’s efforts to strengthen the country’s commodities and export markets.
Alongside the Nigeria Commodity Exchange and the Africa Trade and Distribution Company, the federal government is setting up a National Export Trading Company to improve trade infrastructure and market access.
