Lagos produces, sells Eko Rice at N33,000, as Sanwo-Olu launches N5bn Eko Forward Contracts

Lagos State has joined the league of agricultural production states in Nigeria, produces Eko Rice, which is now being supplied to various markets in the state at the price of N33,000 per 50kg bag.
The Lagos State government established the Imota Rice Mill in Ikorodu, which processes 32-metric tonnes of paddy rice per hour. The Eko Rice hit the market and was listed for trading at the Lagos Commodities and Futures Exchange (LCFE) on Tuesday, at N33,000 per 50kg bag.

Subsequently, Governor Babajide Sanwo-Olu of Lagos State, on the floor of the Lagos Commodities and Futures Exchange (LCFE), UAC Building, Marina, on Wednesday, launched N5 billion Eko Rice Forward Contract Programme towards promoting agricultural production, as well as enhancing food security in Lagos State.
Governor Sanwo-Olu, performing the launch, emphasised that the Eko Rice Contract Programme was a game-changer, which has the objective to make Lagos a hub for agricultural production and processing in Nigeria. he maintained that rice has been a regular staple food consumed by over 80 per cent of Lagos population. The governor stated that the Forward Contract is a key goal in the food security plan of the State Government to guarantee availability of rice at affordable price.

According to Sanwo-Olu, “The N5 billion Series of N30 billion Eko Rice Contracts Programme being launched today is part of our efforts to ensure a sustainable supply of rice paddy for the smooth running of Lagos Rice Mill in Imota. The exchange market is a public-private partnership programme that will provide a platform for farmers, processors, and traders to buy and sell rice contracts at a fair price.
“The programme will also provide a guarantee for the quality and quantity of rice produced, which will enhance the confidence of buyers and sellers in the market.
“Leveraging the Lagos Commodities and Futures Exchange is a critical component of our plan to create a transparent and efficient market for the trading of agricultural commodities and derivatives.
“The Exchange has the potential to transform the agriculture sector by providing a reliable and efficient market for farmers, processors, and traders.”
Sanwo-Olu disclosed that Lagos State Government delved into developing the rice value chain through capacity building for farmers, and provision of inputs and infrastructure in rice production centres in Lagos towards eliminating disruption of the supply chain.
According to Sanwo-Olu, “this effort has scaled up local paddy production by 63.5 per cent, while creating over 2,620 direct and indirect jobs. he added that the intervention further stimulated economic activities and facilitated improved livelihood in rice producing communities.
The governor expressed that the Imota Rice Mill, Ikorodu, Lagos, requires 200,000 tonnes of paddy annually, adding that the Commodities Exchange would create a steady market for the 2.5 million bags of 50kg rice that would be turned out from the mill annually.
Sanwo-Olu had stated: “today’s Bell Ringing is to herald the listing of rice paddy contracts for the Lagos Rice Mill, Imota for open transactions.
“This highlights the opportunities available in rice processing and other value chains of the Lagos Agricultural sector. It will draw attention of local and foreign investors to the Lagos Rice Mill forwards contract, and project the role of the Capital Market in driving development in Lagos commodities ecosystem. We are committed to expanding the programme to cover other commodities, such as cassava, maize, and vegetables.”
The Managing Director of the Lagos Commodities and Futures Exchange, Akinsola Akeredolu-Ale, disclosed that rice was among the 13 crops approved by Securities and Exchange Commission (SEC) for trading at the commodities exchange market, noting that the listing of Eko Rice was a watershed moment in the capital market.
Akeredolu-Ale expressed optimism that collaboration with the Lagos State Government would facilitate paddy rice supply to the Imota Rice Mill, integrate stakeholders in rice value chain across the country and standardise head rice and paddy rice in Lagos.
According to the Managing Director, “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.”

The Chairman of Board of Directors of the Lagos Commodities and Futures Exchange (LCFE) , Chief Onyenwechukwu Ezeagu, also noted that the partnership complemented the objectives of the Exchange in transforming the commodities market by redefining practice norms and catalysing economic growth in the country.
Johnvents Industries Limited, an agro-processing firm, was the first investor to procure 5,000 Forward Contracts worth N195 million on the Exchange floor, and Governor Sanwo-Olu rang the bell for bidding.
It was disclosed that the offer for 50kg of Eko Rice opened on June 13 at the rate of N33,000 per Note, with the commodity being expected to be traded till next Monday, June 26, 2023. Tenor of the Note is 60 days.