• Sunday, December 10, 2023
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N5bn rice contracts launched at Lagos Commodities and Futures Exchange

Why Nigeria rice is not competitive

Lagos Commodities and Futures Exchange (LCFE) has made a quantum leap in its determination to support the growth of agricultural assets in Nigeria with the launch of the N5billion Series 1 of N30billion Eko Rice Contract by the Lagos State Governor, Babajide Sanwo-Olu .

The first Forward Contract to be introduced into the commodities space will be listed on the floor of LCFE at a later date.

The Contract shall create market for rice spots and futures derivatives. ensure product standardisation, enhance availability of high quantity of paddy rice, promote adherence to global best practices, provide organizational support through collateral management services and create business opportunities for small suppliers of the product.

Sanwo-Olu, who launched the Rice Contract, stated that the Lagos State Government shall make the state the hub of rice production in Nigeria.

“This is a significant milestone in our efforts to make Lagos State the hub of rice production in Nigeria. This will create job opportunities and wealth. Lagos State Rice has become a key driver in growing our economy. Our goal is to make rice available and affordable through enhanced rice production. We want the entire investing public to go into the rice production and the entire value chain for the agricultural sector.. We shall be deepening the market together . We are not just stopping at rice production. We are building a mega market hub in the whole of West Africa. We shall also create a space for the Lagos Commodities and Futures Exchange in the process so that there will be a cleaning room to monitor the products from any part of the country and ensure a transparent system,” said Sanwo-Olu.

Akin Akeredolu-Ale, Managing Director, LCFE commended the Lagos State Government on its initiatives towards enhanced food production in Nigeria and assured Governor Sanwo-Olu of The Exchange’s readiness to support the initiatives.

“By this singular act, Lagos State has proven once again its capacity and foresightedness in championing and promoting food security for the good people of Lagos State in particular and the entire country, Nigeria in general. This collaboration will drive the following initiatives: Paddy Rice supply to the Lagos Rice Mill Imota, Integration of Rice Value chain Stakeholders in and outside of Lagos State, and drive paddy rice and Head Rice Standardisation in Lagos State. LCFE will provide an opportunity for investment in the rice value chain through the creation, onboarding and listing of commodities Instruments for Paddy Aggregation and Trading while also providing opportunities for Rice distributors and stakeholders to trade on the Exchange through capital market operators,” Akeredolu-Ale said.

Earlier in his welcome address, Onyenwechukwu Ezeagu, chairman, LCFE expressed gratitude to Governor Sanwo-Olu and his team.

“The capital market is therefore opening to the idea of Commodities Trading and Commodity Instruments and this would not have been possible without the support and partnership of our Regulator SEC, the Capital Market Operators and all the other stakeholders too numerous to mention,” he said.

The event was attended by many dignitaries, including the Lagos State Deputy Governor, Obafemi Hamzat.