The Ethiopia Commodity Exchange (ECX) and Nigeria’s Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) have signed a MoU aimed at bringing significant transformation to the continent’s agricultural marketing and financing systems.
The agreement was signed following the conclusion of a technical and strategic training and study tour provided to a Nigerian delegation through the ECX Academy.
Beyond strengthening bilateral relations between the two nations, the agreement establishes a broad cooperation framework to integrate quality control systems, build trading platforms with modern digital infrastructure, and reduce financial risks within the agricultural sector.
During the signing ceremony, ECX CEO, Mergia Bayissa stated that this agreement creates a major opportunity to elevate commodity exchange systems and warehouse receipt financing services to a higher level.
He added that the system will play a crucial role in ensuring transparency and an efficient market system, thereby strengthening market growth and financial flow for both countries.
Sa’ad Hamidu, who led the Nigerian delegation, noted that the collaboration lays the foundation for exchanging specialized expertise and opening new trade opportunities between the countries; he further emphasized that this would specifically help encourage investment in the agricultural sector and mitigate risks.
The agreement primarily focuses on warehouse receipt financing, the use of modern technology, and shared quality standards, with the integration of the two institutions aiming to create a competitive commodity market at the Pan-African level.
