AFLATOXIN stakeholders
WORKSHOP

STATUS OF WAREHOUSE BUILD UP AND VISION FOR
THE ACCOMPANYING LABORATORIES
BY


MRS KHADIJAT ABDULAZIZ
ABUJA SECURITIES AND COMMODITY EXCHANGE
1
Introduction
 Commodity
Exchange. Is a market that
fosters transparent and efficient trade in
physical and non-physical commodities as
well as their derivatives in order to
ensure price discovery and the
performance of the commodity trade
contract.

Commodity
Exchanges
trade
on
contracts for immediate delivery (Spot), It
also trades in contracts for future
delivery(Forward, Futures and Options).
2
Functions of A Commodity
Exchange
A commodity exchange performs the following functions;
• Assures all commodity market players the security they need
in the market through providing a secure and reliable End-toEnd system for handling, grading, and storing commodities,
• Match offers and bids for commodity transactions, and a riskfree payment and goods delivery system to settle
transactions, while serving all fairly and efficiently.
• Creates trust and transparency through aggressive market
data dissemination to all market actors, through clearly
defined rules of trading, warehousing, payments /delivery and
business conduct, and through an internal dispute settlement
mechanism.
• Provides market integrity at three important levels: the
integrity of the product itself, the integrity of the transaction,
and the integrity of the market actors.
• Puts in place a robust price discovery system
3
Characteristics of commodity
marketing in Nigeria
Currently, Nigerian farmers have no control over the supply
side of the market, as they can not possibly influence the
price of their produce particularly in times of glut and these
prices are usually below the farmers cost of production.
Some of the major characteristics of the markets are:
• Poor market information/intelligence
• Lack of identifiable/available market
• Lack of competition
• No quality standards
• Poor communication
• Lack of transparency
• No enforceable contracts /dispute resolution mechanisms
• Very conservative approach and lack of market fundamentals
4
Cont’d
Unsophisticated and underdeveloped
markets
 Little reliable data on trade flow
 Much of the trade is informal

5
What ASCE can bring to the market
Reliable Market information
 Enforcement of rules and regulation to
ensure contract performance,
 Correct grading certified by recognized
grading laboratory,
 Warehouse receipt system,
 Clearing and Settlement infrastructures

6
What ASCE plans on warehousing
System and grading of laboratories
A . Initiated a TWG to come up with a harmonized
National Grading System(NGS)
NGS will;
• Ensure that buyer and seller are not short
changed in trade, as grade of all traded
commodities are clearly defined in the contract,
• Provide a universal or common language for
describing produce in the market(s)
• Help to gradually bring about improved quality of
commodities in the market as farmers will be
aware that better grades will attract premium
price.
7
Cont’d
The TWG ON NGS:
• Identified commodities of interest based on
tradable commercial volume and export value.
These will include in the first instance the
following: cocoa, cashew, cotton, sesame, maize,
sorghum.
• Identified the National standards for (i) above.
• Identified the relevant stakeholders in the
selected commodities value chain.
• Identified the existing market structures of these
commodities.
• Is planning workshop(s) to harmonize grading
standards of these commodities.
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Cont’d
Plan is in place to embark on comprehensive warehouse
inspection/tour across the country to determine their
suitability (capacity, structural condition, accessibility etc)
• The six zones where grading laboratories are being
considered are; Nassarawa state, (north central), Kano
(north west), Gombe state (north east), Ondo state(south
west), Cross river state(south south), Imo state(south east)
• Installation of high precision equipment (HPLC, ELISA(and
other accessories needed for assay of mycotoxins and other
contaminants in commodities at the designated warehouses.
• Capacity building on mycotoxins, pesticide residue, heavy
metal analysis is being planned.
• Collaboration with stakeholders (MDAs, NGOs, private
sector is being sought.
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Mycotoxins mapping
For the selected commodities, ASCE plans to
conduct quarterly sampling and analysis (for one
year period to determine the major contaminants
e.g mycotoxins, pesticide residue, their
occurrences in storage, along with basic physicochemical screening/grading of the commodities.
• The data generated will form the basis of the
planned action to reducing these contaminants’
occurrence in order to enhance market access of
agricultural commodities in the international
market on one hand and save guard the health of
the Nigerian consumers on the other.
•
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Reducing occurrence of mycotoxins
Collaborate with Ministry of Agriculture
and Rural Development on educating
farmers, merchants and all commodity
handlers on GAP (Good Agricultural
practice
 Ensuring proper warehousing
structure/facilities.

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Conclusion
•
•
•
•
The cost of setting up, equipping and managing functional
laboratories needed for analysis of contaminants (mycotoxins,
pesticide residues, heavy metals) is huge, hence the support of
Government is crucial.
The exchange plans to seek state governments’ support in leasing
suitable warehouses in their states for a comprehensive
implementation of the warehouse receipt system in Nigeria.
In order to sensitize and further educate potential members of the
exchange and their clients on proper management of commodities
(at farm, processing, warehouses, in transit, etc), a course on Good
Agricultural Practice(GAP) will be introduced in the ASCE training
curriculum.
Finally, ASCE will continuously seek synergy with other relevant
organizations to play it own role in the goal to ensure high quality
agricultural commodities
•
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Thank you
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