Agric commodity brokers to float N100bn investment fund

  As part of the initiative aimed at addressing the challenge of inadequate liquidity in Nigeria’s commodity market which is hampering its operation, an investment fund of over N100 billion is been planned for the market.

The fund which is being initiated by the Commodity Brokers Association of Nigeria (CIBN), in collaboration with other stakeholders, is expected when it comes on stream to boost the operations of the market.

Efforts are also being made by the stakeholders to incorporate a funding window for warehousing development, farm land acquisition and leasing, and commercial agric lending, as a way of complementing NIRSAL policy framework, floated by the Federal Government, recently.

Altine Shehu Kajiji, president of CIBN, gave this hint, at the weekend, during a stakeholders’ meeting with players in agricultural value chain in the country, held at the trading floor of the Abuja Security and Commodity Exchange (ASCE) in Kano.

Kajiji said the moves are proactive steps conceived to stimulate players to engage in full gamut of the value chain and building critical mass and capacity that will catalyse into value-driven agro-businesses and commodity exchange operations nation-wide.

“In order to help rejuvenate the operations of the commodity market in the country, I wish to disclose that CIBN is presently working with stakeholders to raise a N100 billion commodity investment fund which will be used in rejecting more liquidity into commodity markets in the different areas we have identified”, he explained.

Kajiji disclosed further that his association intends partnering with other stakeholders to ensure that the Abuja Security and Commodity Exchange (ASEC) is fully functional.

In order to achieve this objective, he stated that CIBN will be encouraging legislation of a Warehouse Financing Act to govern the trading of warehouse receipts as a legal tender in driving the warehousing ecosystem.

“The warehouse receipt (WHR) system is a basic infrastructure that will improve the operations of the Abuja Security and Commodity Exchange. A WHR system enables farmers to use their stored commodities to secure credit from banks and other financial institutions.

ADEOLA AJAKAIYE, Kano