The partnership is expected to bridge the gap in rice production in Nigeria and create different financial instruments that will boost economic activities in the Lagos Rice Mill
It is a form of sustaining the initiative of ensuring massive production of rice in Lagos State and for the benefit of the entire country.
Capital market professionals are already working on various financial instruments to deepen the Rice Value Chain.
Lagos Commodities and Futures Exchange (LCFE) has signed an agreement with the Lagos State Government through the Ministry of Agriculture to jointly drive the development of the Lagos Rice value chain.
In a statement made available to Nairametrics by LCFE, the agreement was sealed in Lagos.
The partnership is expected to bridge the gap in rice production in Nigeria, create different financial instruments that will boost economic activities in the Lagos Rice Mill, Imota through LCFE, generate employment opportunities, and boost government revenue.
The Special Adviser to Lagos State Governor on Rice, Dr. Olurotimi Fashola, and the Permanent Secretary, Ministry of Agriculture, Mrs. Olatokunbo Emokpae, signed the agreement on behalf of Governor Babajide Sanwo-Olu. LCFE was represented by its Managing Director, Mr. Akin Akeredolu-Ale, the Company Secretary, Mrs. Fatima Lawal while Mr. Adeyemi Oba, who signed on behalf of LCFE’s subsidiary, Commodities Tradenet Limited,
Fashola explained that the Lagos State Partnership with LCFE was a win-win, saying: ” This is the first time any subnational will do this. We are happy about this partnership. According to him, it is a form of sustaining the initiative of ensuring massive production of rice in Lagos State and for the benefit of the entire country.
“We would like to thank Mr. Governor once again; the Capital consumption of rice in Lagos state is the Highest in Nigeria.
When you consider smuggling, and all the rice that is brought into Lagos you will understand that Lagos has a taste for good rice and it has the highest consumption rate of basmati rice. The Lagos Rice Mill Imota, is playing to this taste, ” said Fashola.
Support of the Capital Market: Akeredolu-Ale stated that LCFE was committed to the Lagos State Government and the Rice Mill and The Exchange would drive the support of the Capital Market towards the ecosystem.
“I would like to commend Mr. Governor and his team for seeing the need to bridge this gap with the IMOTA rice mill. The Imota Rice Mill is a great project by Mr. Governor and the Lagos State government. This mill will drive the development of the Rice Value Chain and meet the rice demand needs of the nation.
“Our duly licensed Capital market professionals are already working on various financial instruments to deepen the Rice Value Chain. Investors are eager to start investing in the Rice Mill and other rice-backed commodity instruments. Exchange-accredited aggregators have already started supplying paddy to the mill and more are en route to the mill as we speak
This signing ceremony is an opportunity to build stakeholder confidence for a great reception of the financial instruments by the Capital market.”, Akeredolu-Ale said.
What you should know
The Securities and Exchange Commission recently stressed the need for more private-sector investments in the commodities trading ecosystem.
Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda stated this during an interview on the commissioned 32 metric tonnes per hour Lagos Rice Mill in Imota, Ikorodu, Lagos State.
Yuguda noted that the capital market expects to see more private sector investments in areas that need to support the commodities ecosystem like storage facilities and also increased investment in mechanized farming in commodities like rice, hibiscus flowers, and others that are in high demand in other parts of the world.
According to him, “This is a game-changing investment in Lagos state and I hope we will see more of these kinds of investments not only in rice but in other areas of the food chain that we are currently producing. This is the place that produces them as we have the climate for these commodities, if we get the necessary investments, we will be able to make our mark around the world.
“This is a demonstration that Nigeria has what it takes in the agricultural sector to drive investment. This rice mill is already collaborating with one of our commodities exchanges as they are going to be trading the electronic receipts of this rice mill on the floor of the Lagos Commodities and Futures Exchange. This is a very important development in the commodities ecosystem”.
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