The Abuja
Securities and Commodities Exchange (ASCE) is partnering with the CBN
to embark on Warehouse Receipt Financing scheme for farmers.
The group head,
management services of the Exchange, Zaheera Baba-Ari, disclosed the
plan in an interview with the News Agency of Nigeria (NAN) in Abuja on
Tuesday.
Ms. Baba-Ari said
that the scheme would enable farmers to use the receipts to obtain
loans of up to 60 per cent of their commodities in the warehouse.
“During the
harvest, prices of commodities are low because of the glut in the
market. And farmers are encouraged to store their commodities in
standard warehouses until the prices appreciate, instead of taking them
to the market immediately,” she said.
She also said that
the warehouse receipt, which will include the name of the farmer,
location of the warehouse, quality and grade of the commodity, would be
taken to the bank for the loan.
Ms. Baba-Ari said
that the exchange was collaborating with the CBN in the scheme in a bid
to bring down the interest rate of the loans to farmers to one digit
figure to enable them make more profit.
