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AFEX, Kano Seal Deal To Revive Commodity Sector



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Commodities exchange, AFEX and the Kano State Investment and Properties Limited have signed a Memorandum of Understanding to revive the commodity sector in the state.

According to a statement from the exchange on Monday, the collaboration is aimed at fostering cooperation and partnership for the development and growth of the commodity sector within Kano State.

Kano is a key producer of staple consumption commodities like Maize, Paddy Rice, Sorghum, Soybean and Sesame, and export commodities like groundnut.

“This MoU signing reflects AFEX and the KSIP’s commitment to driving growth for the commodities sector, and largely agriculture in Nigeria. Under this partnership, AFEX will deploy its capacity to revitalise the commodities ecosystem in Kano State, identifying idle and untapped commodity assets, deploying infrastructure development, market expansion, and a feasible market for commodity trading and commerce.

“In addition, the partnership will also see AFEX and Kano State work to explore debt capital raise opportunities on the Exchange, focusing on funding projects and operations related to the commodity sector,” AFEX said in the statement.

Speaking on the partnership, the Managing Director of Kano State Investment and Properties Limited, Auwalu Muktari, said, “A core focus for us for KSIP has always been securing wealth for the people of Kano State.
This partnership with AFEX sets precedence to revive the agriculture sector, leveraging adequate human and capital resources to enhance economic productivity and generate value for the state.”

The KSIP has a mandate to promote industrial and commercial activities in the state through the facilitation of direct equity investment and assistance to entrepreneurs engaged in industry, commerce and agriculture.

At the MoU signing, Group CEO AFEX, Ayodeji Balogun, said, “We are delighted at the opportunity to collaborate with the Kano State Investment and Properties Limited to increase efficiency and innovation across the commodity value chain in Nigeria.

“Our exchange model, which we will be deploying during this project, provides a centralised platform for farmers, aggregators, and processors, to engage in transparent and efficient trading and improve fair pricing across the value chain while providing a path to unlocking the significant capital required for such a project.”

The commodity sector in Kano State has been beset by challenges such as droughts, minimal storage, low fertiliser application and lack of quality seeds, limited production and export capacities.


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