The Alternative Bank, NCX move to reshape commodities trade, tackle food insecurity

In a move set to reshape the nation’s commodities market, The Alternative Bank (AltBank) has announced a strategic partnership with the Nigeria Commodity Exchange (NCX) aimed at unlocking greater value across the agricultural value chain through a structured, finance-enabled commodities trading ecosystem.

At the heart of the partnership is a commitment to introduce electronic warehouse receipts (EWRs) as credible collateral, giving farmers, aggregators, and commodity players access to much-needed liquidity without the burden of immediate sales.

Through this system, producers can store their goods in certified NCX warehouses and leverage the warehouse receipts to access tailored financing from AltBank.

By extension, this access to credit enables players in the ecosystem to make smarter trade decisions and avoid losses tied to market timing and price volatility.

Speaking on the significance of the agreement, Gbenga Awe, Group Head, Structured Trade and Commodities Finance at The Alternative Bank, said: “This partnership is a bold step towards rewriting the narrative for Nigeria’s commodity value chain.

For far too long, smallholder farmers and agri-SMEs have been trapped by poor access to capital, post-harvest losses, and unfair price pressures.

“What we’re building with NCX is a structure that allows them to hold on to value, trade on their own terms, and grow sustainably.

We are enabling capital to flow in non-traditional, tech-driven ways that suit the realities of our market.”

Through this collaboration, AltBank will design and deploy warehouse-receipt-backed financing tools integrated with NCX’s certified storage systems, support traceability, and champion credit-readiness education and financial literacy for commodity ecosystem actors.

The broader aim is to ensure that physical goods can be translated into working capital easily, without relying on conventional collateral.

On his part, Anthony Atuche, Managing Director of the Nigeria Commodity Exchange, noted: “Our mandate at NCX has always been to create a transparent, efficient, and inclusive commodities market that works for everyone, especially producers.

This partnership with The Alternative Bank is a major leap in that direction. By facilitating financing through electronic warehouse receipts, we are strengthening price discovery, reducing distress selling, and laying the foundation for a more structured and secure trading environment.”

This partnership comes as the Nigerian government, in partnership with the Nigeria Commodity Exchange (NCX) and the Africa Trade and Distribution Company (ATDC), is establishing a National Export Trading Company (NETC).

The AltBank and NCX collaboration directly responds to this challenge by unlocking capital, stabilising commodity trade, and enabling producers to trade from a position of strength.

The agreement with NCX is a natural extension of The Alternative Bank’s longstanding commitment to advancing commodity trading and financing, aiding financing for major export crops
such as cocoa, cashew, sesame and soya beans.