Rice produced from the Lagos State-owned 32-metric tonnes per hour Imota Rice Mill in Ikorodu has now hit the market, with the listing of the commodity for trade in Lagos Commodities and Futures Exchange (LCFE) on Tuesday.
This was followed by a formal launch of N5 billion Eko Rice Forward Contract Programme by Governor Babajide Sanwo-Olu at the floor of the commodities exchange market, UAC Building in Marina, on Wednesday, marking a significant milestone in the State Government’s efforts to promote agriculture and enhance food security in Lagos.
The Governor of Lagos State, Babajide Sanwo-Olu said the Eko Rice value chain had created no fewer than 2,620 jobs.
This was as he announced the unveiling of the ‘Five Billion
Series 1’ of the ‘30 Billion Eko Rice Contracts Programme’ on the Lagos
Commodities and Futures Exchange.
A statement tweeted by the governor on Wednesday said the
unveiling was a “revolutionary
public-private partnership” which is “a game-changer for agriculture and food
security” in the state.
“Today’s bell-ringing ceremony on Lagos Commodities and
Futures Exchange is a historic moment,” the governor wrote, adding that, “We’re
offering exciting investment opportunities in Lagos’ agricultural sector,
highlighting these investment opportunities and projecting the role of the
capital market in driving development in Lagos’ commodities ecosystem.”
Sanwo-Olu noted that by guaranteeing the availability of
affordable rice, his government was ensuring food security for over 80 per cent
of Lagos families.
He added that the state was also empowering local farmers
and driving economic growth together.
“Our commitment to the development of the rice value chain
has yielded remarkable results. We’ve scaled up local paddy production by 63.5
per cent, creating over 2,620 jobs and improving livelihoods in rice-producing
communities.
“This is just the beginning of our agricultural revolution,”
the governor said.
The statement added, “Through our agreement with Lagos
Commodities and Futures Exchange, we’ll ensure a sustainable supply of paddy to
the rice mill.
“Every three months, 15,000 metric tonnes of paddy will be
milled and sold to the public through subscribers. This collaboration
strengthens the rice value chain and boosts confidence in the market.”
LCFE Managing Director, Akinsola Akeredolu-Ale, said rice was among the 13 crops approved by Securities and Exchange Commission (SEC) for trading at the commodities exchange market, stressing that the listing of Eko Rice was a watershed moment in the capital market.
Akeredolu-Ale said collaboration with the Lagos State government would drive paddy supply to the Imota Rice Mill, integrate stakeholders in rice value chain across the country and standardise of head rice and paddy rice in Lagos.
He said: “LCFE will provide an opportunity for investment in the rice value chain through the creation, onboarding and listing of commodities instruments for paddy aggregation and trading, while also providing opportunities for rice distributors and stakeholders to trade on the Exchange through capital market operators. There is no credit risk associated with the issuer of the Notes, as the underlying commodity assures return on investment.”
Sanwo-Olu tolled the open bell, signifying the formal commencement of trading of the contracts for the commodity. The governor was joined by his deputy, Dr. Obafemi Hamzat, and other top government functionaries.
Johnvents Industries Limited, an agro-processing firm, became the first investor to procure 5,000 Forward Contracts worth N195 million on the Exchange floor.
LCFE Chairman of Board of Directors, Chief Onyenwechukwu Ezeagu, said the partnership complemented the objectives of the Exchange in transforming the commodities market by redefining practice norms and catalysing economic growth in the country.