Modupe Gbadeyanka
By Modupe Gbadeyanka
The Lagos State government has said it would need about N100 billion annually to purchase paddy for the Imota Rice Mill in the Ikorodu area of the metropolis.
The Special Adviser to the Governor on Agriculture and Rice Mill Initiative, Mr Oluwarotimi Fashola, made this disclosure at an event held in Alausa, the state capital, recently.
He said this huge amount of money might not be taken from the government’s purse because of other items begging for attention, but the capital market would be a good avenue to source such funds.
According to him, this is why the state government has agreed to partner with the Lagos Commodities and Future Exchange (LCFE) and other key capital market operators to provide sustainable finance to the commodities ecosystem through the generation of tradable financial instruments.
“We are delighted with this partnership, and with this development, Lagos State has become the first sub-national that will have such an engagement with a commodities exchange.
“A lot has been said about the consumption of rice in Lagos, and I am sure everyone would have eaten rice at least once this week.
“Our per capita consumption of rice is the highest in Nigeria, and it is one of the highest in Africa. It is about 40 kilogram per person per year, and that is almost 50kg of rice per year, and if that is multiplied by our population of over 22 million, the demand for rice in Lagos will be better situated,” the aide to Governor Babajide Sanwo-Olu said.
Describing the Eko Rice as the best in Nigeria today, Mr Fashola said the Lagos rice mill in Imota has come to challenge the status quo about the quality of rice and that there was a need to ensure the ceaseless flow of raw material to make it function optimally.
“Imota mill will require over 200,000 tonnes of paddy annually. It is not cheap. In Nigeria, as of today, that is going into almost N100 billion, and N100 billion of taxpayers’ money being taken from the government will not be the easiest to do in any financial year but with the partnership with the commodities exchange, we can maintain the flow of paddy to the mill, the mill continues to run, we have a comparative advantage of having a good price, and at the same time, the finished rice becomes available in the market,” he noted.
In his remarks, the Managing Director of LCFE, Mr Akinsola Akeredolu-Ale, said, “At the commodities exchange, we understand the need to deepen the capital market and the commodities ecosystem concurrently.
“The capital market plays a critical role in providing sustainable finance to the ecosystem through the generation of tradeable financial instruments,” noting that the liquidity would be raised in batches, with N5 billion targeted for the first batch, N30 billion within six months, and the N100 billion annual target.
