LCFE, regulators strategise to implement FG’s food import directive

• Urge govt to replicate policy in export to tackle FX crisis

Lagos Commodities and Futures Exchange (LCFE) has announced that it is working closely with regulators and other stakeholders in the commodities value chain to ensure seamless implementation of the new government directive that companies should channel the importation of basic food items through commodities exchanges.

Besides, top commodities brokers also urged the Federal Government (FG) to extend the policy to the exportation of all food items to address the issue of the foreign exchange crisis in Nigeria.

The new policy mandated that at least 75 per cent of basic food imported items by companies, be sold through recognised commodities exchanges, with all transactions and storage records expected to enhance price discovery, reduce inflationary pressures, and boost food security for the nation.

Already, the exchange said it has a robust infrastructure on the ground to guarantee easy take-off and smooth implementation of the initiative. Applauding the initiative, alongside top commodities brokers, the Managing Director and Chief Executive Officer of LCFE, Akin Akeredolu-Ale, described the directive as a government’s proactive approach to streamlining the importation process, noting that stakeholders across the entire value chain would benefit from the initiative.

He pointed out that commodities trading ensures that food products are efficiently distributed across the country by matching supply with demand at the basic level.

According to him, this would help to standardise quality, stabilise prices, reduce volatility and make food affordable for consumers.”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 support and cooperation for this initiative. We are already working closely with regulatory bodies and other stakeholders in the value chain to ensure seamless implementation.”

Chief Executive Officer, Mega Equities, Sam Onukwue, urged the government to extend the policy to the exportation of all food items to address forex scarcity in Nigeria.

He pointed out that the new policy is an indication of the government’s determination towards the success of its food security programme by ensuring that scarce forex for imports is properly utilised and well accounted for. “We expect the government to extend the policy to exportation of all proceeds. This is what we have been advocating for all the while. It will not only address the current forex scarcity but enhance the GDP.”

Chief Operating Officer, GTI Group, Kehinde Hassan, stressed the need for the government to collaborate with the key stakeholders in the ecosystem by developing a policy framework, rules, regulations and sanctions for erring stakeholders.

He added that there is a need to create an enabling environment by the government for this policy to stand the test of time and boost confidence.

Also speaking, Group Managing Director of Parthian Partners, Olusheye Olusoga, advocated the need to encourage farmers to increase their output.

He noted that the government’s decision to import and waive some charges on imports is targeted at alleviating pressures on the citizenry in the short term.

However, he suggested that efforts should be made to encourage the farmers to increase productivity, boost the supply of commodities and enhance price reduction, adding that the country cannot survive on importation with a population of over 200 million.