Product Guarantee: Products that are deposited at a warehouse with collateral management are guaranteed 100% in regard to quality and quantity for the duration of its storage; Value-Added Service: By grading products and assaying quality standards, higher-quality products will command better prices in the market, creating an incentive for farmers to better manage their crops after harvesting; Confidence-building in the Financial Markets: With AFEX Nigeria putting our balance sheets behind our quality and quantity guarantee, the bank’s risk on the physical product is eliminated, and banks are then able to extend credit to agricultural clients.
Over the years, an effective – though inefficient – supply chain for commodities has developed across the country, linking grain production areas in Northern Nigeria to demand in the South. AFEX Nigeria has built on existing logistics systems by providing warehouses across major grain-producing states in North-West and North-Central Nigeria, and creating trading terminals where processors, traders and farmers exchange value. These primary and secondary storage facilities are being managed by seasoned collat eral management professionals. We are also currently bidding for 15 out of 33 silos being concessioned by the Federal Government of Nigeria. AFEX Nigeria provides storage solutions, charged per metric ton for commodities in storage. With our solution, vendors can store products at AFEX accredited warehouses or at their own sites. Whichever option our clients choose, AFEX Nigeria manages the entire storage chain on their behalf including all intake procedures, product grading and fumigation. This eliminates the extra cost of moving grains between states, before sending to the final processors.
Collateral management mitigates the risk in storage by guaranteeing the quantity, quality, and location of commodities to the owners, financial institutions and buyers where necessary. Benefits of collateral management include:
AFEX Nigeria has deployed an electronic Warehouse Receipt System (e-WRS) to securitize the underlying commodities, instil integrity of trade and facilitate access to finance. The e-WRS is a real-time online inventory management system audited by PWC Exordia with the ability to transfer stock between buyers, sellers and banks. The e-WRS represents a legal title of ownership of the security and offers increased reliability, lower transaction costs, and limitless geographic reach