AltBank, Commodity Exchange Partner To 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,  group  head, Structured Trade and Commodities Finance at The Alternative Bank, Gbenga  Awe,  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,  managing  director  of  the  Nigeria  Commodity Exchange,  Anthony  Atuche, 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.”