Stanbic IBTC assures farmers, others of integrity of e-warehouse receipt system

The CEO of Stanbic IBTC Bank, a member of the Stanbic IBTC Group, Yinka Sanni, has assured farmers and other stakeholders in Nigeria’s agribusiness sector that the novel electronic warehouse receipt system (e-WRS) introduced by the Nigeria Commodity Exchange (NCX) will engender integrity of transactions, transparency, and sustainability.

Sanni gave this assurance at the official launch of the pilot electronic warehouse receipt system in Abuja. Stanbic IBTC will act as the settlement bank for transactions on the e-WRS.

“Stanbic IBTC is honoured to be chosen as the settlement bank for the pilot e-warehouse receipt system. This collaboration and our involvement in the process leading up to the establishment of this new electronic system is a testament to Stanbic IBTC’s alignment with the developmental aspirations of Nigeria,” Sanni said.

According to Sanni, Stanbic IBTC, with over 180 branches across the country, is a full-fledged Nigerian financial institution that will continue to plug into laudable initiatives like the e-warehouse receipt system to help transform lives and grow businesses. “As the settlement bank for the e-WRS, Stanbic IBTC plays a vital role as the middleman to ensure transparency, sustainability, and integrity of the system,” he said, even as he assured farmers that the bank will remain accessible and responsive to their needs.

Olusegun Aganga, minister of trade, industry and investment, who commissioned the electronic warehouse system, commended Stanbic IBTC for its dedication and invaluable contribution to ensuring the take off of the scheme. The minister said government will continue to explore public private partnerships to ensure the success of government’s reforms in agriculture and other sectors of the economy.

According to Sanni, Stanbic IBTC will leverage its experience in the agricultural sector, its highly trained and motivated workforce, innovative products, and the heritage of the Standard Bank Group, to which Stanbic IBTC belong, to ensure the success of e-WRS and government’s transformation agenda. Some of the bank’s efforts in agriculture include its participation in the Agricultural Credit Guarantee Scheme by CBN, extension of financing to farmers through the Agricultural Production Loan, among others.

Explaining how the new system works, Yusuf Abdurrahim, managing director of NCX, said the e-WRS will enable farmers preserve their produce for future sale in a certified warehouse, which then issues an electronic receipt against deposited produce. Such receipt can then be traded by the farmer.

To Abdurrahim, the electronic system is an all-inclusive model, targeted at both the large and small holder farmers as well as other stakeholders. The new system is expected, among other things, to engender efficient storage system, which will reduce transaction costs and stabilise commodity prices, provide liquidity for farmers, who can access loans using the receipt as collateral, and ensure quality and standardisation of produce.

Stanbic IBTC Holdings, a member of Standard Bank Group, is a full service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. Standard Bank Group is the largest African bank by assets and earnings. It is rooted in Africa with strategic representation in 20countries on the African continent, including South Africa.

Standard Bank has been in operation for 151 years and is focused on building first-class, on-the-ground banks in chosen countries in Africa and connecting other selected emerging markets to Africa and to each other, applying sector expertise, particularly in natural resources, globally.