Food Security: LCFE Tasks FG on Utilisation of Commodities Exchanges

The Managing Director and Chief Executive Officer, Lagos Commodities and Futures Exchange (LCFE), Mr Akin Akeredolu -Ale, yesterday urged the federal government to utilise the commodities exchange ecosystem as a strategy to boost food security, create job opportunities and enhance Nigeria’s capacity to earn foreign exchange.

Akeredolu-Ale in a media interactive session with commodities correspondents in Lagos commended the efforts of the federal government in addressing the issue of food security but explained that the government could achieve better if commodities exchanges were involved in the processes

He said, “Commodities exchanges connect smallholder farmers in rural areas to large markets. This increases earning income capacity, a key aspect of household food security. They facilitate food storage through their warehouses. Through warehouse receipts smallholder farmers can access imput loans to purchase fertilisers and other materials. Commodities exchanges reduce default risks in trading and encourage investment in food systems and they manage price risks in food system by offering future trading. They have capacity to promote competition, reduce transaction cost and make food available amongst others.

“The Nigerian economy is experiencing a food crisis with the fast-rising food costs, cost of transportation, insecurity, poor infrastructure, and foreign exchange instability. All these have affected the ability of commodity stakeholders to successfully produce food and transport it to where it’s needed. Therefore, its commendable to note that Mr President, his administration and the executive governors of Niger State, Mohammed Umar Bago and the Executive Governor of Lagos, Governor Babajide Sanwo-Olu have taken strong decisive steps to securing our Nation’s food supply chain.

“In Lagos State, the launch of the Lagos Rice Mill, the largest rice mill in Africa and the third largest rice mill in the world commenced operations in 2023 and has produced over 100,000 bags of rice in 2023. The mill’s products rival any global rice brand being imported into the country with their quality, taste and color