The Lagos Commodities and Futures Exchange (LCFE) has urged the federal government to utilise the commodities exchange ecosystem as a strategy to boost food security, create job opportunities and enhance Nigeria’s capacity to earn foreign exchange.
In an interactive session with commodities correspondents in Lagos, managing director and chief executive officer of LCFE, Akin Akeredolu -Ale commended the efforts of the federal government in addressing the issue of food security, explaining that, government could achieve better if commodities exchanges were involved in the processes.
He said: “Commodities Exchanges connect small holder farmers in rural areas to large markets. This increase earning income capacity, a key aspect of household food security. They facilitate food storage through their warehouses. Through warehouse receipts small holder farmers can access loans to purchase fertilizers and other materials.”
Akeredolu -Ale noted that, “the Nigerian economy is experiencing a food crisis with the fast-rising food costs, cost of transportation, insecurity, poor infrastructure, and foreign exchange instability. All these have affected the ability of commodity stakeholders to successfully produce food and transport it to where its needed.”
He noted that, President Bola Tinubu’s administration and the Governors of Niger State, Mohammed Bago and the Governor of Lagos, Governor Babajide Sanwo-Olu have taken strong decisive steps to secure the Nation’s food supply chain.
“In Lagos State, the launch of the Lagos Rice Mill has produced over 100,000 bags of rice in 2023. The mill’s products rival any global rice brand being imported into the country with their quality, taste and color,” he said.
He pointed out that, “Lagos Commodities and Futures Exchange since receiving its license in 2019 has propagated the need for the investing community to focus on the Commodities Ecosystem .
as not only the next Gold mine but a route to driving the GDP of the economy from single digit to double digits.
LCFE has called for attention to the Commodities Ecosystem as a $1 trillion economy, rich in Agricultural, Oil and gas and Solid mineral commodities.
He added that LCFE kicked off the year 2024 with a series of agreements geared towards the development of the Commodities Ecosystem, saying, “some of these agreements include the National Coconut Development and Propagative Initiative (NATCODEV) for the growth of the Coconut Value Chain. The Exchange is also working on a proposal for a new rice mill will be coming on stream in the coming months to drive further development in the rice value chain.
“Commodities Exchanges are known to contribute to the stability and price discovery of the Commodities ecosystem of their economy and LCFE has shown significant contributions with plans to dramatically contribute to the introduction of structured financing with the help of the capital market.”
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