By Chinwendu Obienyi
Nigeria has inaugurated its first commodities auction market through a collaboration between the Lagos Commodities and Futures Exchange (LCFE) and the Mile 12 International Market Traders Association.
According to a statement from LCFE, this initiative is set to transform trade practices and align them with global standards.
This initiative, modeled after Zimbabwe’s successful auction system, will focus on transparent price discovery, regulated trading, and quality control.
Key objectives of the partnership will involve a structured trading environment, market expansion, financial inclusion, implementation of cold-storage facility.
In this regard, traders will gain tools for quality assurance and access to broader markets, consumers will benefit from higher-quality products at competitive prices and in turn, food availability will be enhanced.
Expressing optimism, the Chief Executive Officer, LCFE, Akin Akeredolu-Ale described the launch of the Lagos auctions market as a significant move to in align local trade with global standards while adding that this also aligns with Lagos State’s vision of becoming a global trade hub.
“We aim to ensure that goods reaching consumers are of the highest quality. To achieve this, we have developed guidelines for packaging and quality control, providing producers with the necessary tools to meet these standards.
This effort aligns with our broader strategy to transition local markets from a domestic focus to international trade readiness”, he stressed.
Akeredolu-Ale noted that the participation from market leaders and associations highlighted the readiness of traders to embrace structured trading practices.
Responding to concerns about the low literacy levels among some market participants, he noted that the initiative was designed to enhance existing market operations rather than disrupt them.
The LCFE CEO said, “These markets have functioned effectively for decades. Our role is to modernize and scale their operations by introducing templates for quality control, packaging, and access to broader markets.
The auctions market will provide a dedicated trading day, every Wednesday, for structured transactions, ensuring high-quality products are available at competitive prices. The initiative will also preserve traditional market days while introducing a specialized platform for regulated trading, enabling participants to expand their reach to international markets”.
Similarly, Chairman Mile 12 market, Alhaji Shehu Usman, highlighted the association’s role in addressing food accessibility and post-harvest losses, stressing the importance of continuous education to drive acceptance.
Usman expressed confidence in the collaboration of the Traders’ Association with LCFE and its potential to bring significant benefits to market members and the broader Lagos community.
According to him, the association’s primary goal is to ensure food is readily available to everyone. “With Lagos’ population projected to grow from the current 22 to 25 million and increase from 30 to 35 million in a few years, this partnership will play a vital role in meeting demand and reducing food shortages,” he added.
Whilst highlighting the necessity of continuous education to foster understanding and acceptance among stakeholders, Usman compared the process to the initial skepticism surrounding point-of-sale (POS) systems and the introduction of raffia baskets to reduce waste, both of which eventually gained widespread acceptance.