LFCE, Market traders partner to establish auction market

The Lagos Commodities and Futures Exchange (LCFE) and the Amalgamated Traders Associations of Mile 12 International Market have signed a Memorandum of Understanding (MOU) to establish commodities auction market.

The LCFE disclosed this in a statement made available on Friday in Lagos state.

In the statement, the Managing Director and Chief Executive Officer of LCFE, Mr Akin Akeredolu-Ale, described the auctions market as a significant move to align local trade with global standards.

He said the inspiration was drawn from Zimbabwe’s successful auctions market which operated weekly.

According to him, the primary objective of the Lagos auctions market is to create a structured and regulated environment for trading, ensuring compliance with strict standard for sanitation, packaging, and overall produce quality.

Akeredolu-Ale emphasized that the initiative was consistent with the Lagos State’s vision of becoming a 21st-century city with goods and services that would meet international benchmark.

“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.” Akeredolu-Ale said.

He stated that LCFE had engaged stakeholders, and representatives of traders dealing on yams, livestock, and beans, adding that the traders have shown readiness to embrace structured trading practices.

According to him, the key benefit of the initiative include reducing post-harvest losses, introducing cold storage solutions, and establishing efficient buyer-seller connections.

He said such measures would foster financial inclusion, promote sustainability, and enhance market efficiency and transparency.

The LCFE’S boss also said that the initiative would enhance existing market operations, “It will not disrupt it.

“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 for structured transactions, ensuring that high-quality products are available at competitive prices.

“The initiative will also preserve traditional market days while introducing a specialized platform for regulated trading. It will enable participants to expand their reach to international markets.

The Chairman of Mile 12 International Market, Lagos, Alhaji Shehu Usman, described the MOU as a mutually beneficial partnership made to revolutionize trade practices.

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 state community.

“This partnership is a win-win situation. The Lagos Commodities and Futures Exchange has a proven track record of excellence.

“The Exchange is tested and trusted, so we have every reason to believe in the success of this initiative,” he said.

Usman highlighted the extensive efforts undertaken to educate market members on the advantages of the agreement.

“We have explained the benefits of this partnership in multiple languages—English, Yoruba, Igbo, and Hausa—to ensure that everyone understands its value.

“With the collaboration of the LCFE and the state government, we are optimistic that this initiative will run smoothly and benefit everyone involved.” Usman said.

The chairman said the initiative would address critical challenges such as food accessibility and post-harvest losses, adding that it will reduce food shortages.

Usman said there was need for continuous education to foster understanding and acceptance among stakeholders.

He compared the process to the initial skepticism on point-of-sale (POS) system and the introduction of raffia baskets to reduce waste.

He said the POS system eventually gained widespread acceptance.

“Not everyone will grasp the full scope of this initiative immediately, but with ongoing education and clear examples of its benefits, we are confident it will be embraced.

“This partnership is not just about improving market practices but also about creating a sustainable framework for food distribution and trade efficiency.

“This understanding will lead to significant progress for our market and the entire state. With the right input and cooperation, the sky is the limit,” he said.

NAN / Foluke Ibitomi