Sterling Bank Nigeria Plc has inaugurated digital, end-to-end Blockchain technology focused commodity trading and financial market. Developed in collaboration APEX commodities exchange and Binkabi, the platform will assist in reduction of intermediation in trade and at the same involve in wider distribution of profits across the value chain. This will be made possible through the decentralization of Agric commodity trading in Nigeria.
The chief executive officer of sterling bank, Abubakar Suleiman, said at the press briefing that Nigeria loses 50 percent of its agricultural products on yearly basis due to post harvest operations. He added that we can tackle this kind of challenges by the introduction and establishment of agricultural commodities platform that is viable and excellent.
He stated further that among the staple foods that suffer the most loss among agricultural commodities in Nigeria are cereal grains like soya beans, Maize and rice. He continued by saying that those kind of problem can be minimized through the application of modern scientific storage technologies and providing liquidity.
He also went further to state that the positive result of the partnership is that agric sector will be revamped and the farmers will be worthy for commercial lending. He stated further that it will provide an avenue for more banks to lend to farmers without intervention funds. This will allow the government to free up funds that is meant for Agricultural sector to other industries.
Ayo Balogun, the country Manager Nigeria at AFEX said that the commodity exchange market was established to assist farmer eliminate risks and ensure payment are made via efficient and trustworthy financial service problem.
Balogun added further that they are excited that sterling Bank has onboard to address the plight of farmers by helping them minimize the exploitation by the middlemen. Farmers can now use their receipt as collateral as well as on commodity exchange market without moving their agro commodities from the ware house.
The CEO, Binkanbi Quan Le stated that the goal of the platform is to boost the fairness and profitability of the commodity network through collective efforts while Maximizing blockchain Technology.