3 months ago
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The Lagos Commodities and Futures Exchange and leading commodities brokers have commended the Federal Government and the Central Bank of Nigeria for their recent directive mandating companies to channel the importation of basic food items through recognised commodities exchanges.
The policy, designed to enhance price discovery, reduce inflationary pressures, and bolster food security in Nigeria, requires that at least 75 per cent of imported basic food items be traded through commodities exchanges, with all transactions and storage properly documented.
In a statement made available to The PUNCH on Wednesday, the Managing Director and Chief Executive Officer of LCFE, Akin Akeredolu-Ale, hailed the policy as a proactive move by the government to streamline the food importation process.
According to Akeredolu-Ale, the initiative will benefit stakeholders across the entire value chain.
“Lagos Commodities and Futures Exchange is ready and eager to play a pivotal role in facilitating seamless transactions and contributing to the overall success of this initiative. We pledge our full support and cooperation. We are already working closely with regulatory bodies and other stakeholders in the value chain to ensure seamless implementation.
We have the necessary infrastructure to guarantee smooth execution of this policy,” he stated.
He stressed that commodities trading plays a critical role in ensuring the efficient distribution of food products across the country, matching supply with demand, standardising quality, stabilising prices, and ultimately making food more affordable for consumers.
Similarly, the Chief Executive Officer of Mega Equities, Sam Onukwue, urged the government to extend this policy to the exportation of all food items to address Nigeria’s ongoing foreign exchange scarcity.
“This policy reflects the government’s commitment to the success of its food security programme by ensuring that scarce foreign exchange for imports is properly utilised and accounted for. We have been advocating for this, and extending the policy to exportation will not only address the forex scarcity but also enhance the GDP,” Onukwue noted.
Additionally, the Chief Operating Officer of GTI Group, Kehinde Hassan, also applauded the policy as timely, adding that for it to be effective, the government must collaborate with key stakeholders in the ecosystem.
“To further boost confidence in this policy, the government should develop a comprehensive framework that includes rules, regulations, and sanctions for erring stakeholders. An enabling environment from the government is essential for this policy to stand the test of time,” Hassan stated.
The Group Managing Director of Parthian Partners, Olusheye Olusoga, highlighted the importance of encouraging farmers to increase their output.
Olusoga added, “The government’s decision to import and waive some charges on imports is aimed at alleviating pressure on citizens in the short term. However, to boost the supply of commodities and reduce prices, efforts must be made to encourage farmers to continue growing their produce, as the population of over 200 million cannot rely solely on importation.”
