N5bn contract will create market for rice, says LCFE

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Lagos Commodities and Futures Exchange has moved to support the growth of agricultural assets in Nigeria with the launch of the N5bn Series 1 of N30bn Eko Rice Contract by the Lagos State Governor, Babajide Sanwo-Olu.

According to a statement, the first forward contract to be introduced into the commodities space will be listed on the floor of LCFE at a later date.

The statement said the contract would create a market for rice spots and futures derivatives, ensure product standardisation, enhance the availability of high quantity of paddy rice, promote adherence to global best practices, provide organisational support through collateral management services and create business opportunities for small suppliers of the product.

Sanwo-Olu, who launched the rice contract, stated that the Lagos State Government would make the state the hub of rice production in Nigeria. He said, “This is a significant milestone in our efforts to make Lagos State the hub of rice production in Nigeria. This will create job opportunities and wealth. Lagos State Rice has become a key driver in growing our economy.

 

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