October 17, Lagos, Nigeria – Africa’s leading commodities player, AFEX, unveiled its updated pricing methodology for its commodities exchange business unit on the sidelines of the second edition of the AFEX CEO Breakfast Session. The implementation of the price methodology fills a gap in formalizing participation in the Nigerian commodities ecosystem, as the firm doubles down on investor education and protection, while enhancing price discovery and eliminating price gaps across the different boards on the Exchange.

The AFEX Commodities Exchange pricing methodology is a framework used by the Exchange to transparently communicate the prices of the commodities that are available for trade. Previously, the pricing methodology aggregated prices across all markets and represented them differently across each of the Exchange’s boards. However, the new methodology will unify these prices from different markets and boards to generate a homogenized price per commodity.

During his presentation at the CEO breakfast, President/CEO AFEX Nigeria, Akinyinka Akintunde relayed relevant updates on the Exchange stating that “We have launched initiatives to strengthen data availability and accessibility for the commodities market in the country over our years of operation. This to be a core fundamental for a robust and vibrant market. Improving our thinking around pricing is a commitment to transparency, and to ensuring that stakeholders understand the pricing and valuation of these commodities while being able to access the data for decision-making.”

Clients on AFEX’s trading platform are currently exposed to three boards inclusive of a cash settled market board, OTC board and Dawa board. These boards enable investors and value chain players to hedge risks, diversify their portfolios and get orders fulfilled by participating on the Exchange. In the coming months, investors can also expect the introduction of a fixed income board and derivatives trading board on the upgraded trading platform teased at the CEO breakfast event.

In attendance at the event were stakeholders from the financial markets, capital markets and the manufacturing industry. During his Keynote address, MD Sahel Capital, Mezuo Nwuneli stressed the importance of unlocking finance for the $1 trillion commodity market. He said “Food inflation and global trends point to the need to build resilient food supply chain systems, and commodity investment serve as the vehicle to bolster Africa’s regional supply chains. By leveraging private sector and foreign investments, we can unlock value for the agriculture value chain and hedge against creeping inflationary pressures.”

The AFEX market turnover currently stands at $300 million, with more education drives planned to serve as a catalyst for the continued development of the commodities market ecosystem in Nigeria.

About AFEX

AFEX is a platform business that enables efficient trade for commodities in Africa. Solutions start at the producer level, ensuring improvement in productivity and livelihoods while building up commodity volumes in the right quality and quantity for local and regional trade.

Operating through 3 business units, AFEX addresses the challenges faced by smallholder farmers, providing better access to inputs, credit facilities, micro-insurance, storage services, training, and markets. Partnership with different key players across the agricultural value chain, including processors, logistics service providers, financial institutions, and regulatory authorities, makes our goal of supporting Africa's food security possible.

A range of clients and members also trade physical commodities and commodity contracts through AFEX’s technology platforms as AFEX continuously bridges the gap between the capital market and the commodities market, unlocking finance for production, trade, processing, and export of commodities.