Introducing Electronic Warehouse Receipts in Nigeria to Facilitate Access to Finance for Commercial Farmers and Enhance Economic Growth

Abstract

The dwindling Nigerian economy is associated with its excessive dependence on crude oil. However, it is argued that diversifying its economy to agriculture, a more sustainable sector, by introducing electronic warehouse receipts can facilitate farmers' access to finance and boost the economy. This research examines the validity of this argument and inquires whether it is possible for Nigeria to successfully adopt electronic warehouse receipts and operate the electronic warehouse receipt system to achieve this purpose. This analysis is done through a wholesale law reform and comparative law perspective. The study adopts a doctrinal methodology that evaluates primary sources like statutes and judicial precedents. It equally examines secondary sources in the public domain, such as journal articles and command papers. This research underscores the significant benefits Nigeria would gain from amending its warehouse receipt Bill to endorse the sole use of electronic warehouse receipts. It also confirms the viability of using electronic warehouse receipts as collateral under the Nigerian personal property and secured transactions laws. While introducing electronic warehouse receipts could pose initial challenges, this study suggests that Nigeria has the proficiency to overcome them. Nevertheless, there should be the creation of sufficient awareness and capacity-building exercise conducted by some prospective stakeholders of the electronic warehouse receipt system, such as the Nigerian Information Technology Development Agency, to enlighten and train other potential beneficiaries of the system like farmers and warehouse operators, among others, on how electronic warehouse receipts work, as it will be an innovative concept in Nigeria. Since this research is based on the International Institute for the Unification of Private Law/the United Nations Commission on International Trade Law draft Model Law on Warehouse Receipts and Nigeria’s warehouse receipt Bill, future research could include examining the completed model laws to determine whether the outcome of this research needs modification.