Lagos state parners with Lagos Commodities and Futures Exchange to Revolutionise Agriculture

The Lagos State Government in partnership with Lagos Commodities and Futures Exchange (LCFE) is set to raise $2 billion by floating Agricultural Commodities Notes.

The partnership, according to the state government, is set in motion to revolutionise agriculture, enhance food production and ascertain food security.

To adequately prepare for the initiative, top officials of the state government held engagements with the management of LCFE, the second in its series.

Lagos State Commissioner for Agriculture, Abisola Olusanya, speaking at the event stated that the state was keen on ending food scarcity by injecting capital into agriculture.

She revealed that large expanse of land had been developed to create central logistics as hubs in the locations of the state.

She said, “To catalyse its five-year Agricultural Road map, Lagos State is prepared to raise $2 billion from private sector participation in partnership with the LCFE by floating Commodity Notes. The state has a strong capacity to raise medium and long-term funds to execute developmental projects.

“It had raised huge amounts from the financial market over the years without default. The government is fully committed to the total transformation of Agriculture to boost food production. We shall place a premium on capacity building among others to drive our agricultural revolution.”

On his part, State’s Commissioner for Finance, Dr. Rabiu Olowo said the Babajide Sanwo-Olu led administration is committed towards Agricultural Commodities, while bemoaning the poor contribution of agriculture to the Gross Domestic Product (GDP) of the state.

“We have a new road map to transform agriculture. We need to raise funds for this at the LCFE. The contribution of Agriculture to the Gross Domestic Product (GDP) of Lagos State is less than two percent. This is not heartwarming and we have to change the narrative.

“The good thing is that payback of the money we intend to raise is not contingent on sinking fund. The project will re-appraise itself. We shall work with competent financial advisers,” Olowo said.

Speaking also, the Managing Director, LCFE, Mr. Akin Akeredolu-Ale said LCFE will provide opportunities for Lagos State Government to meet its financial obligations.

“We are proposing that Lagos State Government lists an Exchange Traded Note (ETN) of N100 billion in the first instance on LCFE in a bid to fund the 5-year Agricultural Road Map,” he added.