By Chinwendu Obienyi
To support the growth of the rice value chain and enhance food security in Nigeria, the Lagos Commodities and Futures Exchange (LCFE) has said it is aiming to increase supply of paddy rice to the Lagos Rice Mill by tenfold at the end of the year.
The exchange also revealed that it facilitated transactions totaling over N600 million through registered brokers since it began trading paddy rice on its platform in 2023.
Its Chief Executive Officer, Akin Akeredolu-Ale, stated this during a brief chat with some finance correspondents in Lagos.
Whilst noting that the LCFE has been instrumental in advocating for investment in the commodities ecosystem as a means to significantly boost Nigeria’s GDP from single to double digits, Akeredolu-Ale stated that the potential of the commodities market is estimated to be worth trillions of dollars, particularly in agricultural, oil and gas, and solid mineral commodities.
He revealed that one of LCFE’s significant achievements is being the first exchange in Nigeria to list and trade physical gold coins, known as “Eko Gold Coins,” which started in 2022.
According to him, this digital asset enables investors to purchase gold in small quantities, with prices increasing from an initial listing of 42,500 Naira per gram to 65,000 Naira per gram by February 2024.
He said, “This initiative has seen over 66 million Naira worth of gold traded through registered commodity brokers on the exchange. Additionally, LCFE began trading paddy rice in 2023, facilitating transactions totaling over 600 million Naira through registered brokers. The exchange has further advanced by signing a Memorandum of Understanding (MOU) with the Lagos State Government for the development and operationalization of the Lagos Rice Mill.
As part of this collaboration, the mill received over 10,000 metric tonnes of paddy rice in 2023, with LCFE aiming to increase supply to the mill tenfold in 2024. These efforts signify LCFE’s commitment to supporting the growth of the rice value chain and enhancing food security in Nigeria”.
Commending the government’s Food Security and Agricultural Mechanization Programme which was flagged off recently by President Bola Tinubu in Niger state, Akeredolu-Ale praised the FG’s commitment to food sufficiency and economic growth, but however, called on more collaborative steps with the commodities market and the capital market to adequately secure the country’s food supply chain.
“Amidst the challenges to food security in Nigeria which include rising food costs, transportation expenses, insecurity, poor infrastructure and FX instability, there have been impressive initiatives taken to address these challenges. However, more proactive steps and partnerships with the LCFE can help secure the nation’s food supply chain”, Akeredolu-Ale said.