LCFE to list Agvest N5 billion cashew nut contract
The Lagos Commodities and Futures Exchange (LCFE) has screened a frontline player in the agricultural value chain in Nigeria, Agvest Limited, for the listing of its N5 billion Cashew nut contract by diversified financial instruments.
Under the proposed listing, financial instruments worth N1.5 billion with cashew nuts as the underlying assets, are scheduled to be offered to investing public through commercial papers (CP) and short-term exchange-traded notes (ETN).
Addressing journalists in Lagos, yesterday, Agvest’s Managing Director, Olabode Abikoye, said the proceeds of the offer would enable the company to get both plantation and factory up and running in West Africa.
According to him, the company would commence with cashew aggregation on the spot market and issue ETN in the medium to add value to the industry.
“Our decision to list cashew nut contracts on the LCFE is to enable private investors to enjoy the benefits of quotation. We shall, by this approach, support the government’s drive to generate foreign exchange. We have 210 hectares of land as a plantation in Iwo, Oyo State and we are working closely with Oyo State Investment and Public Partnership Agency (OYSIPA) to activate our plan.
“As a listed product, our cashew shall always meet international standards as prescribed by the International Standard Organisation (ISO), which requires good temperature, moisture level and grade. Many stakeholders in the commodities value chain in Nigeria operate in silos. One of our company’s functions is to integrate the stakeholders in the value chain.” says Abikoye.
The Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, noted that Nigeria had the opportunities to earn robust income from cashew nuts.
“Nigerian cashew sector is dominated by smallholder farmers numbered at about 25,000 and some commercial plantations, with an average cultivated area of 325,000 hectares, local processing industry is growing gradually while there is a significant rise in export due to increased awareness of the export potential and processing opportunities,” he said.
The Chairman, Mega Group, Sam Onukwue expressed optimism that LCFE would transform the commodities ecosystem and put it on the global map.
He attributed one of the challenges that raw exporters face to the inability to repatriate their funds back into the country.
He pointed out that the Nigerian cashew sector is dominated by smallholder farmers numbered at about 25,000 and some commercial plantations, with an average cultivated area of 325,000 hectares.
According to him, the local processing industry is growing gradually while there is a significant rise in export due to increased awareness of the export potential and processing opportunities.