LCFE, Brokers Urge Govt to Extend Importation Directive to Boost Forex Reserves

…Commend FG, CBN on new food importation policy

Samuel Mobolaji

The Lagos Commodities and Futures Exchange (LCFE) and leading commodities brokers have praised the federal government and the Central Bank of Nigeria (CBN) for their recent directive mandating that companies channel the importation of basic food items through commodities exchanges.

This new policy is expected to improve price discovery, curb inflation, and enhance food security by requiring that at least 75 per cent of basic food imports be sold through recognized commodities exchanges, with all transactions and storage fully documented.

CEO of Mega Equities, Sam Onukwue, called for an extension of this policy to the exportation of all food items to address the ongoing forex scarcity in Nigeria.

“This policy demonstrates the government’s commitment to its food security program by ensuring scarce forex for imports is properly utilized and accounted for. Expanding this directive to cover food exports would not only address the forex shortage but also enhance the nation’s GDP,” Onukwue suggested.

Managing Director and CEO of LCFE, Akin Akeredolu-Ale, described the policy as a proactive government initiative aimed at optimizing the importation process.

According to him, “This directive benefits stakeholders across the entire value chain. LCFE is prepared to play a pivotal role in facilitating seamless transactions and ensuring the successful implementation of this policy”.

He, also, emphasized LCFE’s commitment to collaborating with regulatory bodies and stakeholders to ensure that food products are efficiently distributed, prices are stabilized, and quality standards are maintained.

COO of GTI Group, Kehinde Hassan, applauded the policy as a timely intervention and recommended that the government collaborate with key stakeholders to develop a robust framework that includes rules, regulations, and sanctions to ensure compliance.

“An enabling environment is essential for the longevity of this policy,” Hassan stated.

On his part, Group Managing Director of Parthian Partners, Olusheye Olusoga, stressed the need to encourage increased agricultural output to supplement importation.

“While the government’s decision to facilitate imports and waive certain charges aims to alleviate immediate pressures, it is crucial to support local farmers to boost production. A population of over 200 million cannot rely solely on imports,” Olusoga emphasized.

These endorsements reflect a broad consensus among market stakeholders that the new directive could significantly impact Nigeria’s food security and economic stability if effectively implemented and extended to cover a wider range of food transactions.