The Lagos Commodities and Futures Exchange (LCFE) has announced the opening of the N5 billion series one of N30 billion Eko Rice Contract by the Lagos State Governor, Babajide Sanwo-Olu, on the exchange in order to encourage the expansion of agriculture in Nigeria.
The commodities market has now seen the introduction of its first forward contract. At a later time, the asset will be listed on the LCFE floor.
In addition to ensuring product standardization, enhancing the availability of the large amount of paddy rice, promoting adherence to international best practices, providing organizational support through collateral management services, and opening up business opportunities for small suppliers of the product, the contract will also create a market for rice spots and futures derivatives.
Sanwo-Olu, the person who announced the rice contract, spoke at the occasion and reaffirmed the Lagos State Government’s commitment to making the state a center 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 of LCFE, praised the Lagos State administration for its efforts to increase food production in Nigeria and gave the governor assurances that the exchange will support the projects.
“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 in particular, and Nigeria, in general. This collaboration will ensure Paddy Rice supply to the Lagos Rice Mill Imota, integration of rice value chain stakeholders in and outside the 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.
Governor Sanwo-Olu and his staff received gratitude from LCFE Chairman Onyenwechukwu Ezeagu.
He remarked: “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.”
