LCFE says: N5bn contract will create market for rice in Lagos

Lagos Commodities and Futures Exchange has moved to support the growth of agricultural assets in Nigeria with the launch of the N5bn Series 1 of N30bn Eko Rice Contract by the Lagos State Governor, Babajide Sanwo-Olu.

According to a statement, the first forward contract to be introduced into the commodities space will be listed on the floor of LCFE at a later date.

The statement said the contract would create a market for rice spots and futures derivatives, ensure product standardisation, enhance the availability of high quantity of paddy rice, promote adherence to global best practices, provide organisational support through collateral management services and create business opportunities for small suppliers of the product.

Sanwo-Olu, who launched the rice contract, stated that the Lagos State Government would make the state the hub of rice production in Nigeria.

He said, “This is a significant milestone in our efforts to make Lagos State the hub of rice production in Nigeria. This will create job opportunities and wealth. Lagos State Rice has become a key driver in growing our economy.

The Managing Director, LCFE, Akin Akeredolu-Ale, commended the Lagos State Government on its initiatives towards enhanced food production in Nigeria.

He assured Sanwo-Olu of the Exchange’s readiness to support the initiatives.

“By this singular act, Lagos State has proven its capacity and foresightedness in championing and promoting food security for the good people of Lagos State in particular and the entire country, Nigeria in general.

“This collaboration will drive the following initiatives: Paddy Rice supply to the Lagos Rice Mill Imota, Integration of Rice Value chain Stakeholders in and outside of Lagos State, and drive paddy rice and Head Rice Standardisation in Lagos State.