AltBank, Nigeria commodity exchange partner to boost food security with warehouse-backed financing

In a strategic move aimed at transforming Nigeria’s agricultural landscape, The Alternative Bank (AltBank) has partnered with the Nigeria Commodity Exchange (NCX) to introduce a finance-enabled commodities trading ecosystem. The collaboration is designed to address critical challenges in the nation’s commodity value chain, including food insecurity, poor access to capital, and post-harvest losses.

Central to the partnership is the introduction of electronic warehouse receipts (EWRs), which will serve as credible collateral for farmers, aggregators, and commodity traders. This system enables producers to store their goods in certified NCX warehouses and leverage the receipts to access financing from AltBank removing the pressure to sell immediately and helping mitigate price volatility.

Speaking on the initiative, Gbenga Awe, Group Head of Structured Trade and Commodities Finance at AltBank, described the partnership as a game-changer for smallholder farmers and agri-SMEs. “For far too long, they’ve faced poor access to capital and unfair price pressures. What we’re building with NCX is a structure that lets them hold on to value, trade on their own terms, and grow sustainably,” Awe said.

As part of the deal, AltBank will develop warehouse-receipt-backed financing tools integrated with NCX’s certified storage systems. The bank will also provide financial literacy support and champion credit-readiness education for commodity ecosystem participants.

Anthony Atuche, Managing Director of the Nigeria Commodity Exchange, emphasized the long-term impact of the initiative. “Our mandate has always been to create a transparent, efficient, and inclusive commodities market. By enabling financing through electronic receipts, we are reducing distress sales and laying the groundwork for a secure and structured trading environment,” he stated.

The broader vision of the partnership is to allow physical goods to be easily converted into working capital without relying on conventional collateral, ultimately supporting national food security and sustainable trade growth.