The Lagos Commodities and Futures Exchange (LCFE) has blamed Nigeria’s continued food insecurity challenges on farmers’ lack of knowledge and education.

The LCFE chief executive officer, Akin Akeredolu-Ale, said this in an interview on Tuesday in Lagos.

Mr Akeredolu-Ale said one of the biggest challenges the exchange faces in addressing food insecurity is the need for widespread awareness and education among farmers and market participants.

“Many farmers still rely on traditional methods and are hesitant to engage in formal, structured markets. Also, infrastructure deficits, such as inadequate storage facilities and transportation networks, can limit the effectiveness of commodities trading.

“LCFE is working to overcome these challenges by partnering with government and private entities to improve infrastructure and by conducting extensive outreach and training programmes,” Mr Akeredolu-Ale said.

He disclosed that the exchange would continue to manage food inflation in the country through the provision of an efficient marketplace for commodities trading.

“LCFE helps manage food inflation by providing a transparent and efficient marketplace for commodities trading. By allowing prices to be set based on real-time supply and demand, LCFE reduces price manipulation and speculation, which can drive up costs.

“Additionally, through futures contracts, market participants can hedge against inflationary pressures, ensuring that food prices remain stable over time,” the LCFE boss said.

He added that the exchange collaborates with development agencies, banks, and private investors to create funding opportunities for smallholder farmers, agribusinesses, and infrastructure projects.

“LCFE has also set up a structure for all the stakeholders across the value chain to align partners and create long-standing development relationships for the ecosystem,” he said.

The LCFE was incorporated in May 2015 and was granted a full operating licence on June 14, 2019, by the Securities and Exchange Commission.

LCFE is a commodities exchange that trades agricultural commodities, currencies, oil and gas, and solid materials.

Its vision is to transform the Nigerian commodities market, redefine practice standards, and catalyse economic growth in Nigeria, boosting the commodity value chains and foreign earnings and rewarding all stakeholders.

(NAN)