The Federal Government’s efforts to address the issue of food scarcity in Nigeria has been given a boost with the recent four-part Memorandum of Understanding (MoU) on sale and purchase of Paddy Rice by Lagos Commodities and Futures Exchange (LCFE) with Niger Food Security Systems & Logistics Company Limited (NIGER FOODS), Lagos State Rice Company Limited (LASRICO) and Commodity Tradenet Limit.

By the historic agreement, LCFE will serve as a designated platform for the trading of Paddy Rice and other relevant commodities. The signatories would operate on collective agreement on the specification, quantities and terms on the sale and purchase of the famous Paddy Rice, being produced in Lagos State.

This agreement was an offshoot of the recent agreement between Lagos State Government and Niger State Government on how to ameliorate the challenges of food security across the country.

Governor Umar Bago of Niger State hailed the agreement as unprecedented and aligned with the President Tinubu’s food security agenda, expressing readiness to engage other states for mutual benefits and private sector growth.

Commenting on the MoU, the Managing Director and Chief Executive Officer of LCFE, Akin Akeredolu-Ale , said : ” The Lagos Commodities Exchange is With a focus on facilitating capital injection for food security through the capital market in the medium to long-term, our priority is to fortify the Niger State Commodity ecosystem. Together, we’re paving the way for sustainable agricultural growth and the development of the Nigerian Economy.”

Under the Agreement, LASRICO will provide storage such as warehouses and sikos to be registered on LCFE as commodities holding facilities for storing paddy rice and other commodities. It will also be responsible for processing paddy rice to all the finished rice products. Niger foods will deliver the specified quantity and quality of paddy rice to the designated delivery location(s) ensuring that there is supply of paddy rice to the Rice Mill at Imota. It will ensure a supply soya, sorghum, cotton and sesame for trading on LCFE. Tradenet will ensure liquidity flow, through partnered financial institutions in the sales and purchase of the commodities involved in this agreement.

LCFE will race N100 billion food security fund from the capital market in the medium to long term, to support the Niger State Commodity ecosystem.

The agreement is expected to promote the supply of Paddy Rice to the Lagos Rice Mill in Imota and enhance food security in the nation. Niger Foods is a Special Purpose Vehicle established by the Niger State Government and Sammya Nigeria Limited. The company will work with a total of 250,000 to 5,000,000hectares for production, aggregation, processing, conditioning and storage facility at every local governments councils in the state.

LASRICO, is a Special Purpose Vehicle by the Lagos State Government for running of the Lagos Rice Mill, Imotta, while Tradenet is a subsidiary of LCFE.

Published Date: March 21, 2024