In an effort to alleviate hunger and tackle food scarcity in Nigeria, the Federal Government entered into a Four-part memorandum of understanding (MoU) with Lagos Commodities and Futures Exchange (LCFE), Niger Food Security Systems & Logistics Company Limited (NIGER FOODS), Lagos State Rice Company Limited (LASRICO), and Commodity Tradenet Limited.
This collaboration stems from a recent agreement between the Lagos and Niger State Governments aimed at addressing food security challenges nationwide.
Governor Umar Bago of Niger State expressed his satisfaction with the agreement, emphasizing its alignment with President Tinubu’s food security agenda. He also affirmed his commitment to engaging with other states for mutual benefits and private sector growth.
Key Points of the Agreement:
- – LCFE will act as the designated platform for trading Paddy Rice and other relevant commodities.
- – LASRICO will provide storage facilities such as warehouses and silos, registered on LCFE, for storing paddy rice and processing it into finished rice products.
- – Niger Foods will ensure the delivery of specified quantity and quality of paddy rice to designated locations for processing, as well as supply other commodities like soya, sorghum, cotton, and sesame for trading on LCFE.
- – Commodity Tradenet will facilitate liquidity flow through partnered financial institutions in the sales and purchase of commodities covered by the agreement.
- – LCFE plans to raise a N100 billion food security fund from the capital market in the medium to long term to support the Niger State Commodity ecosystem.
The agreement aims to increase the supply of Paddy Rice to the Lagos Rice Mill in Imota and bolster food security nationwide. Niger Foods, established as a Special Purpose Vehicle by the Niger State Government and Sammya Nigeria Limited, will oversee production, aggregation, processing, conditioning, and storage facilities across local government councils in the state, covering a vast land area.
LASRICO, a Special Purpose Vehicle of the Lagos State Government responsible for operating the Lagos Rice Mill in Imota, and Tradenet, a subsidiary of LCFE, are also integral to the agreement.
Akin Akeredolu-Ale, Managing Director and Chief Executive Officer of LCFE, commented on the MoU, stating, “The Lagos Commodities Exchange is committed to facilitating capital injection for food security through the capital market in the medium to long term. Our focus is on strengthening the Niger State Commodity ecosystem, fostering sustainable agricultural growth, and contributing to the development of the Nigerian Economy.”
