NaijaAgroNet reported African Press
Organization (APO) as quoted Dr Akinwumi Adesina, the transformational Minister
of Agriculture, as saying, “Strengthening agricultural markets is critical to
diversifying Nigeria's economy. Our partnership with AFEX will help to improve
the access of farmers to markets, reduce post-harvest losses, stabilize prices
and raise their incomes. We are rapidly modernizing agriculture in Nigeria and
the development of warehouse receipt systems will underpin the successful
establishment of thriving agricultural commodities exchanges in Nigeria.”
Elumelu, the Chairman of AFEX
Holdings, said, “We are pleased to be working with the Nigerian government on
this project to deliver transformative, sustainable investment to the country’s
agribusiness sector. This initiative is a step towards financially empowering
more farmers and ensuring that agriculture is not only commercially viable, but
a strong positive contributor to the Nigerian economy. This builds on the
experience and success of our subsidiary – East Africa Exchange – in Rwanda
which has become a critical player in agribusiness development across the
continent.”
He continued: “My partners and I are
greatly encouraged by the transformation of Nigeria's agriculture sector as
driven by Dr Adesina and we want to support the federal government in its
innovative approach.”
Nicolas Berggruen, the founder and
president of Berggruen Holdings, said, “Agriculture in Africa is key to the
prosperity of the continent. Specifically for Nigeria, we are investing
in the infrastructure needed to ensure the flow of commodities from farms to
the local, regional, and global marketplace.”
Nigerian farmers may now use
receipts for their produce as collateral for loans. This will control price
volatility due to the availability of buffer stock, enabling farmers to sell
produce at better price points. The two-year pilot phase of the warehouse
receipt system covers seven states, mostly in northern Nigeria, where
agriculture is by far the largest economic sector – Kano, Kaduna, Katsina,
Zamfara, Kwara, Gombe and Oyo – and will commence in October 2013.
The Federal Ministry of Agriculture
will support the warehouse receipt system by creating the enabling environment
that is essential for its successful delivery, and will also provide warehouse
infrastructure.
Jendayi Frazer, the former US Assistant
Secretary of State for Africa, who is the Managing Partner at AFEX, stated,
“The warehouse receipt system will help improve food security across Nigeria.
It will not only give farmers and cooperatives better access to markets by
linking their market produce to high-value buyers, but will also deliver higher
profits for stakeholders. AFEX believes our electronic warehouse receipt system
and improved warehousing operations will be the stepping stone to establishing
a vibrant commodities exchange in Nigeria.”NaijaAgroNet
... Linking agrobiz, people & technology