With the introduction of the N5 billion Series 1 of N30 billion Eko Rice Contract by the governor of Lagos State, Babajide Sanwo-Olu, the Lagos Commodities and Futures Exchange has taken action to support the expansion of agricultural assets in Nigeria.
The first forward contract to be introduced into the commodities market, according to a statement, will be listed on the floor of LCFE at a later time.
According to the statement, the contract would establish a market for rice spots and futures derivatives, ensure product standardisation, increase access to large quantities of paddy rice, encourage the use of best practises from around the world, offer organisational support through collateral management services, and open doors for small producers of the good.
The rice contract’s initiator, Sanwo-Olu, declared that Lagos State would become the nation’s centre for rice production.
This is a big step in our efforts to make Lagos State the centre of rice production in Nigeria, he said. This will generate wealth and employment opportunities. Lagos State Rice has played a significant role in the expansion of our economy.
Akin Akeredolu-Ale, the managing director of LCFE, praised the Lagos State Government for its efforts to increase food production in Nigeria.
He gave Sanwo-Olu his word that the Exchange would support the initiatives.
By performing this one particular deed, Lagos State has demonstrated its ability and foresight in championing and promoting food security for the good people of Lagos State specifically and the entire nation of Nigeria generally.
The supply of paddy rice to the Imota rice mill in Lagos, the integration of stakeholders in the rice value chain in and outside of Lagos State, and the advancement of paddy rice and head rice standardisation in Lagos State are all driven by this collaboration.
