The Abuja Securities and Commodity Exchange (ASCE) with the support of the World Bank (WB), has commenced the development of a Warehouse Receipt System (WHR) that will enable farmers use their stored commodities to secure credit from banks.
The WHR System will be used as a tool for the development of rural agricultural marketing and as a basic infrastructure to revitalize the Exchange.
This will strengthen small and medium scale farmers and invariably create jobs and a sustainable economic growth, which falls in line with Government’s Transformation Agenda.
The WHR System will also improve the livelihood of farmers as they will be able to deposit their produce in standard warehouses and defer sale till the price of their commodities appreciate.
They may then use the WHR’s as collateral to obtain loans from banks to enable them meet other obligations.
The receipts may also be traded on the exchange, thereby enhancing liquidity.
There are however, certain physical, regulatory and institutional infrastructure needed for the success of a WHR System; one of which is a network of standard warehouses.
It is this regard that the ASCE with support from the WB is undertaking a National Warehouse Inventory of public and private warehouses in order to determine the available warehousing capacity.
Yusuf Abdurrahim, manging director of ASCE said that the government had recognized the importance of the exchange in the development of its agricultural agenda and was committed to ensuring that it is repositioned within the next 15months.
According to him the government has sought technical assistance from key world bodies, as well as caused the ASCE to enter into a relationship with one of the successful exchange in Africa.