The Lagos Products and Futures Exchange (LCFE) announced on Friday a partnership with Heritage Bank to create a structure for trading contracts for wheat and its allied products.
LCFE Managing Director Mr. Akin Akeredolu-Ale revealed this in a statement while addressing commodity ecosystem operators in Lagos.
Akeredolu-Ale said the association followed the ongoing intervention by the Central Bank of Nigeria (CBN) to position the country as a net exporter of wheat.
He said that the main bank’s intervention to address perennial imbalances in wheat production in Nigeria led to the disbursement of 41 billion naira to Participating Ficial Institutions (PFIs), including the Heritage Bank, for the production of quality wheat through of accredited anchor borrowers.
Akeredolu-Ale said the primary role of the Exchange was to create a structured platform for fungible negotiable instruments that are risk-free forward contracts across commodities in agriculture, mineral resources, oil and gas, where issuers can also write a variety of contracts.
He commended the CBN and the Securities and Exchange Commission (SEC) for the current initiative on wheat production and creating an enabling environment for the development of the commodity ecosystem, respectively.
“LCFE is pleased to have a partner in Heritage Bank for the development of the commodity ecosystem.
“We are committed to partnering with the bank to develop the value chains for wheat, its commodities and the data for the overall development of the wheat value chain. Our stake is at the main entrance.
“The exchange would continue to provide the necessary support to Heritage Bank through the alignment of various stakeholders and partners,” said Akeredolu-Ale.
L-R: Executive Director, Agvest Limited, Mr. Bode Abikoye, former Executive Director, Lake Chad Research Institute; Dr. Oluwasina Olabanji, Managing Director, LCFE, Mr. Akin Akeredolu-Ale; Head of Division, Agribusiness Project Development and Natural Resources, Heritage Bank, Mr. Olugbenga Awe at LCFE and Heritage Bank Association Forum on Wheat and Allied Products Trade at LCFE in Lagos
Also speaking, the former executive director of the Lake Chad Research Institute, Dr. Oluwasina Olabanji, regretted that Nigeria spent two billion dollars annually on importing wheat due to insufficient commercial quantities and poor quality of inputs. primary.
According to him, given the diverse uses of wheat, any country that lacks the capacity to produce the basic product for consumption and sale is bound to face trade balance challenges.
However, he expressed optimism that the main bank’s intervention would address the challenges facing wheat production, boost investment opportunities in agriculture, improve foreign exchange earnings and provide jobs for the country’s many unemployed youth.
Mr. Olugbenga Awe, Head of the Agribusiness, Natural Resources and Project Management Division at Heritage Bank, said the bank was committed to promoting the development of agricultural value chains in Nigeria.
Awe said that the bank’s involvement in the sector dates back many years and that it has always been at the forefront in ensuring the overall growth and development of commodities in Nigeria.
“The CBN Governor recently announced the lead bank’s N41billion intervention in Nigerian wheat production for commodity associations and anchor companies.
“Heritage Bank is pleased to work with CBN and other stakeholders such as the Nigerian Wheat Producers Association, the Nigerian Association of Wheat Producers, Processors and Traders, the Lake Chad Research Institute and other development partners, Nigerian flour mills and various seed companies and others to support more than 100,000 farmers in wheat production.
“We are pleased to work with LCFE to ensure its sustainability and deepen investment opportunities in agricultural products, solid minerals and energy space,” said Awe.
Source: NAN
