Sterling Bank introduces improved agricultural commodity trading platform in Nigeria
***…to facilitate funding for agro dealers
Lagos, Nigeria February 1, 2020: Leading commercial bank, Sterling Bank PLC has declared open for public use SABEX, its newly enhanced agriculture commodities platform in Nigeria.
SABEX, first introduced in 2018, is the world’s first fully digitised, end-to-end blockchain commodities trading and financing platform, built by Sterling Bank Plc in collaboration with AFEX Commodities Exchange Limited.
Mr Yemi Odubiyi, Executive Director, Corporate & Investment Banking of Sterling Bank, who disclosed this in a statement issued by the bank recently, explained that the upgraded digital commodities trading platform will provide real-time credit financing solution for farmers, sellers and buyers of agro commodities to transact.
Odubiyi said Sterling Bank has shown beyond every reasonable doubt that it is committed to important innovations, adding that the end-to-end blockchain commodities trading and financing platform is the future of agribusiness and trading in the country.
Odubiyi said, “With all that we have done, we wish to further expand agribusiness’ growth, improve investments in the sector, and drive economic growth using innovative technologies such as SABEX. We are confident of the huge prospects available to all stakeholders who come on the platform.”
The Executive Director noted that, “Aside from the opportunities available for electronic warehouse receipt, commodity trading has just got better on the platform,” remarking that, “It is no understatement that at Sterling Bank, our commitment to innovative banking and wealth creation is one of the reasons for the SABEX solution.”
The Executive Director said SABEX has become imperative because the extensive intermediation associated with commodity trading in Nigeria which has resulted in losses for primary producers over the years.
He said the platform aims to increase the earning capacity of commodity producers and other supply chain actors by offering trading opportunities at fair prices to a diverse pool of buyers and sellers.
Odubiyi added that the platform also “seeks to promote commodity as an asset class to attract investments into the agricultural sector by aggregating important components of the chain: provision of storage facilities; assemblage of buyers and other value chain actors; banking and financing opportunities in a stress-free, secured and transparent market-place system such that stakeholders can earn more while ensuring food security and economic prosperity.”
By this development, Sterling Bank’s role as a major driver of innovation and creativity in Nigeria’s agriculture sector has been re-affirmed.