Starting today, Stanbic IBTC Bank will provide a trading platform and serve as the settlement bank for the Nigeria Commodity Exchange’s (NCX) pilot electronic Warehouse Receipt System (e-WRS) which is being launched in Abuja today, Thursday 10 July 2014.
With this commodity exchange system, farmers will be able to take their agricultural produce to accredited warehouses where the produce will be preserved for sale. The e-WRS is an electronic receipt that will be issued to farmers at the accredited warehouses and it can be used by the farmers for any of the following:
• Farmers can use the receipt as collateral to obtain loans from banks
• Farmers can trade the receipt on the floor of the Nigeria Commodity Exchange
• Farmers can keep their commodities in the warehouses until prices appreciate
The minister for Investment, Trade and Industry - Mr Olusegun Aganga, CON, lauded the contributions of Stanbic IBTC Bank and was highly impressed with the level of commitment and professionalism the Bank exhibited in making the launch highly successful.
Chief Executive of Stanbic IBTC Holdings, Mrs Sola David-Borha explains that “Stanbic IBTC has a well-structured business unit that focuses on agriculture. The bank is accessible to all operators in this sector. We have developed a number of schemes and products that will have significant impact on the entire agricultural value chain.
Stanbic IBTC Bank is one of the leading financial institutions contributing to the growth of agriculture in Nigeria, with products and services customized for the sector. We are also working with a number of government agencies and multilateral organizations to spearhead a true agricultural revolution in Nigeria leveraging on the Standard Bank Group’s experience and expertise in agricultural financing”.
The Chief Executive Officer of the NCX, Yusuf Abdulrahim, avers that an active commodity exchange will significantly help in unlocking Nigeria’s agriculture potential, especially the revival of cocoa and cotton production for export. Agriculture is a game changer for the country if the sector receives the desired level of commitment by both the private and public sectors, he emphasised.
Stanbic IBTC aims to become one of the top agriculture financing banks in Nigeria through a number of bespoke schemes and initiatives. It also fits well into the Agricultural Transformation Agenda of the Federal Government which among others seeks to create improved market integration and significant reduction in post-harvest losses.
