- NCX and BIPC signed an MOU to create a structured, technology-driven commodity market in Benue State, addressing challenges like post-harvest losses, poor price discovery, and market fragmentation.
- The partnership will leverage NCX’s national infrastructure for storage, financial inclusion through electronic warehouse receipts, quality assurance, and digital platforms to connect farmers with local and international buyers.
- This initiative positions Benue to benefit from the Federal Government’s export drive, making its agricultural produce standardized and export-ready, boosting non-oil exports and economic diversification.
The Nigeria Commodity Exchange (NCX) and the Benue Investment and Property Company (BIPC) have formalized a groundbreaking Memorandum of Understanding (MOU) that is set to revolutionize the agricultural market and significantly boost non-oil exports from Benue State, known as the “Food Basket of the Nation.”
Strategic Alliance to Structure Benue’s Commodity Market
The three-day strategic partnership meeting culminated in the signing of the MOU, establishing a formal alliance designed to integrate Benue’s robust agricultural output—including staple crops like Yam, Cassava, Maize, and Soybean—into the national and international structured trading ecosystem.
This partnership is a direct and strategic response to long-standing challenges facing Benue farmers, including:
- High Post-Harvest Losses
- Poor Price Discovery
- Inadequate Storage Capacity
- Market Fragmentation
NCX and BIPC will jointly establish a transparent, technology-driven, and structured trading environment, providing direct market access to the state’s large population of farmers, cooperatives, and agripreneurs.
Leveraging National Infrastructure for Local Prosperity
The collaboration will leverage NCX’s national infrastructure and expertise to provide critical solutions:
- National Warehouse Network: Utilizing NCX delivery warehouses to reduce losses and improve storage.
- Financial Inclusion: Implementing systems like electronic warehouse receipts (EWRs) to enable farmers to use their stored commodities as collateral to access finance from banks.
- Quality Assurance: Establishing capacity building and quality assurance systems to ensure Benue’s produce meets global standards.
- Digital Linkages: Providing market intelligence and digital platforms to connect producers directly to verifiable buyers, both locally and internationally.
Export-Ready: Anchoring Benue in the National Export Drive
Crucially, this MOU positions Benue State to fully benefit from the Federal Government’s proposed National Export Trading Company (NETC) framework, in which NCX plays a key role.
The collaboration will ensure that Benue’s produce is aggregated, standardized, and made export-ready, significantly increasing its competitiveness and profitability in regional and global markets. This move directly supports the federal drive for economic diversification and a robust non-oil export base.
A Commitment to Economic Empowerment
Managing Director, NCX stated: “This handshake between NCX and BIPC is not just an agreement—it’s a commitment to solving real problems: waste, inefficiency, and disconnection in our agricultural ecosystem. For NCX, it’s progress toward a sustainable and inclusive ecosystem that strengthens Nigeria’s food security.”
BIPC GMD added: “For Benue State, this is a bold step from subsistence to structured, profitable trade. It will empower our hardworking farmers, stabilize prices, and unlock enormous investment opportunities across the value chain, ensuring the ‘Food Basket of the Nation’ truly thrives.”
The formalization of the MOU signals the immediate commencement of efforts to implement the strategic initiatives, promising a new chapter of structured trade, stability, and prosperity for Benue State’s agricultural sector.
What to know
Nigeria experiences significant annual post-harvest losses estimated at $10bn, with a recent survey putting the losses at 30-50% across the board.
- Lack of infrastructure, including modern storage facilities and adequate transportation facilities, has been a key factor contributing to post-harvest losses.
- A structured commodity market system is needed to eliminate price gauging, ensure farmers get paid adequately and make agriculture an attractive venture for farmers.
- The Nigeria commodity exchange was established to curtail these challenges but has faced various hurdles overtime.
- Benue exploit is the first in a series of designed systems by the NCX to address these issues as President Tinubu’s administration seeks to revive the role of the exchange in the economy.