Market News

Stakeholders in the Nigerian commodities ecosystem yesterday threw their weights behind the federal government’s implementation framework for food importation, describing it as a major boost for food security and reducing inflation.

Stakeholders, including the Lagos Commodities and Futures Exchange (LCFE) and top commodities brokers, commended the government for the food importation directive, which stipulates that at least three-quarters of imported basic food items under the special intervention programme must be sold through commodities exchanges.

President Bola Tinubu had granted a six-month suspension of tariff on basic food imports as part of concerted efforts aimed at taming rising food inflation and ease average costs of livings for Nigerians.

Under the implementation framework released by the Nigeria Customs Service (NCS), at least 75 per cent of imported items must be sold through recognised commodities exchanges, with all transactions and storage recorded.

The importing companies must keep comprehensive records of all related activities, which the government can request for compliance verification.

Commodities’ experts said the use of commodities exchanges would enhance price discovery, reduce inflationary pressures, and boost food security for the nation.

Managing Director, Lagos Commodities and Futures Exchange (LCFE), Mr. Akin Akeredolu-Ale, said the use of commodities exchanges would benefit all stakeholders across the value chain.

According to him, the commodities exchanges would help in streamlining the importation process while ensuring that the real objectives of the government’s intervention programme are achieved.

“Lagos Commodities and Futures Exchange is ready and eager to play a pivotal role in facilitating seamless transactions and contributing to the overall success of this initiative. We pledge our support and cooperation for this initiative. We are already working closely with regulatory bodies and other stakeholders in the value chain to ensure seamless implementation.  We have infrastructures that will guarantee smooth implementation of this policy.

“At the basic level, commodities trading ensures that food products are efficiently distributed across the country by matching supply with demand. This helps to standardize quality, stabilise prices, reduce volatility, and making food affordable for consumers,” Akeredolu –Ale said.

Chief Operating Officer, GTI Capital Group, Mr. Kehinde Hassan  said the implementation guideline was timely and thoughtful.

He called for continuing collaboration between the government and stakeholders in the commodities ecosystem, particularly in ensuring the success of the policy directive.

Chief Executive Officer, Mega Equities, Sam Onukwue, urged the government to extend the policy to exportation of all food items to address foreign exchange (forex) scarcity in Nigeria.

“It signifies the government’s determination towards the success of its food security programme by ensuring that scare forex for imports are properly utilised and well accounted for. We expect the government to extend the policy to exportation of all proceeds. This is what we have been advocating for all the while. It will not only address the current forex scarcity but enhance the Gross Domestic Products (GDP),” Onukwue said.

Group Managing Director, Parthian Partners, Olusheye Olusoga, while commending the short-term intervention programme, said that government should remain focused on long-term sustainability through ongoing efforts to boost domestic food production.

“The government’s decision to import and waive some charges on imports is targeted at alleviating pressures on the citizenry in the short term. In order to boost the supply of the commodities and reduction in prices, efforts should be made to encourage the farmers to continue to grow their produce as the population of over 200 million cannot survive on importation,” Olusoga said.