AFEX, Nigeria’s first licensed private commodities exchange announces updates to enhance service delivery efficiency on their exchange. The updates include an enhanced methodology for the AFEX Commodity Index (ACI) and AEFX Export Index (AEI), both of which form a crucial part of AFEX’s data stack, providing investors and market stakeholders with real-time prices of commodities and the export market. The update also includes a revised fee structure for exchange services.

The updated commodities index has tracked historical prices of commodities such as Maize, Sorghum Paddy Rice and now Soybean, while the Export index tracks Cocoa, Ginger and newly, Sesame, within a shorter period for a more accurate performance analysis. Prior to the reconstitution of the commodities index, it tracked the price performance of Maize, Soybean and Paddy Rice with weights, however the new index now stands at Maize 60.55%, Paddy Rice 18.84%, Sorghum 14.54%, with the new addition of Soybean at 6.07%.

The Export index initially tracked Cocoa and Ginger with weighted scores of 62% and 37% respectively, however, the improved index captures Cocoa, Ginger and an additional value chain, Sesame, with a weight spread of 39%, 31% and 28% respectively. Justification for the updates comes on the back of significant changes in Nigeria’s economic environment relating to the level of domestic production of the commodity in Nigeria as estimated by FAO stats. This necessitated a newer methodology with a more realistic scope.

Speaking on the updates, Akinyinka Akintunde, President/CEO, mentioned “These updates represent our unwavering commitment to driving much needed technology innovation that contributes to efficient value chains, while increasing transparency, and growth in Nigeria’s commodities ecosystem. With these tools, we are empowering stakeholders to make better-informed decisions which ultimately unlocks new opportunities for commodities trading and investment”

In a separate development, AFEX has also introduced a new fee structure to support its mission of providing exceptional service while maintaining financial sustainability. The updated fee structure, which took effect from the 10th of December, 2024, encompasses fixed income, collateral management, electronic warehouse receipts (eWRs), trade board, and membership services. The changes come on the back of aligning with global industry practices and regulatory guidelines, ensuring that AFEX remains competitive while enhancing operational efficiency. The fees will continue to exclude VAT and are designed to support infrastructure maintenance, regulatory compliance, and the delivery of innovative services to investors.

Read up how the indexes work here.