By Chinwendu Obienyi
Managing Director of the Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu-Ale, has affirmed that the exchange is fully equipped to ensure smooth and effective transactions in line with the federal government’s recent directive on the importation of basic food items.
The new policy, introduced by the federal government and the Central Bank of Nigeria (CBN), mandates that companies channel their importation of essential food items through officially recognized commodities exchanges. Additionally, it stipulates that a minimum of 75% of these imports must be sold via these exchanges, with all transactions and storage activities meticulously recorded.
Akeredolu-Ale commended the initiative as a strategic move by the government to refine the food importation process, stabilize food prices, and enhance food security. He emphasized that this approach will positively impact all stakeholders within the food supply chain.
He elaborated on the role of commodities trading in optimizing food distribution across Nigeria, stating, “At its core, commodities trading aligns food supply with demand, which is crucial for standardizing quality, stabilizing prices, and reducing market volatility. This process ultimately makes food more affordable for consumers.”
Sam Onukwue, CEO of Mega Equities, suggested that the government extend this policy to the exportation of food items as well.
He argued that such an extension would address foreign exchange (forex) shortages and support the country’s economic stability.
“The government’s move underscores its commitment to its food security agenda by ensuring that limited forex resources for imports are effectively utilized. We advocate for a broader application of this policy to include food exports, which would alleviate forex constraints and boost GDP,” Onukwue stated.
Kehinde Hassan, Chief Operating Officer of GTI Group, also praised the policy, calling it timely. He recommended that the government collaborate closely with key stakeholders to develop a comprehensive policy framework, including rules, regulations, and sanctions, to ensure effective implementation and address non-compliance.
Olusheye Olusoga, Group Managing Director of Parthian Partners, highlighted the importance of supporting local farmers to increase their production. He noted, “While the government’s decision to import and waive certain charges aims to provide short-term relief for citizens, it is essential to encourage local farmers to boost their output. Given Nigeria’s population of over 200 million, reliance on imports alone is not sustainable.”
Overall, the collaborative efforts and strategic adjustments suggested by industry leaders are expected to enhance the effectiveness of the new food importation policy and contribute to Nigeria’s food security and economic stability.