LCFE, Mile 12 traders collaborate to enhance trade practices through auctions market
Onome Amuge
L-R: Dandama Yabo, chairman, Shukura Yam Association of Lagos State; Shehu Usman Jibril, chairman, Mile 12 International Market , Lagos,; Akinsola Akeredolu-Ale, managing director/CEO, Lagos Commodities and Future Exchange (LCFE); Saadu Yusuf, chairman, Arewa Community, Lagos State; and Badamasi Basis, chairman, Kara Livestock Market, Berger, during the signing of Memorandum of Understanding (MoU) between LCFE and Arewa Traders’ Association on LCFE’s plan to set up a pan African Commodities Auction Market in Nigeria in Lagos at the weekend
The Lagos Commodities and Futures Exchange (LCFE) and the Amalgamated Traders Associations of Mile 12 International Market signed a Memorandum of Understanding (MOU) to establish a commodities auction market.
The MOU was formalised during a ceremony held at the LCFE headquarters in Lagos, attended by key stakeholders and representatives of both organisations.
Akin Akeredolu-Ale, managing director and chief executive Officer of LCFE, spoke at the event, highlighting the historic significance of the Lagos auctions market launch in bringing local trade practices into alignment with international standards.
Akeredolu-Ale mentioned that the Lagos auctions market was inspired by Zimbabwe’s successful auctions market, which operates weekly and sets a precedent for transparent price discovery and regulated trading.
He explained that the primary objective of the Lagos auctions market is to create a well-organised and regulated environment for trading, ensuring compliance with stringent standards for sanitation, packaging, and overall produce quality.
The LCFE CEO underscored that the Lagos auctions market initiative was in line with the state’s vision of becoming a 21st-century city, producing and trading goods and services that meet international benchmarks.
“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,” he said.
To ensure a smooth launch of the Lagos auctions market, the LCFE engaged various stakeholders, including representatives from yam, livestock, and beans markets.
Akeredolu-Ale highlighted that the involvement and support from market leaders and associations were encouraging, indicating that traders were willing to adopt more organised trading practices.
“Key benefits of the initiative include reducing post-harvest losses, introducing cold storage solutions, and establishing efficient buyer-seller connections. These measures aim to foster financial inclusion, promote sustainability, and enhance market efficiency and transparency,” Akeredolu-Ale explained .
Responding to concerns about the low literacy levels among some market participants, he noted that the initiative was designed to enhance existing
market operations rather than disrupt them.
“These markets have functioned effectively for decades. Our role is to modernise 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, every Wednesday, for structured transactions, ensuring high-quality products are available at competitive prices. The initiative will also preserve traditional market days while introducing a specialised platform for regulated trading, enabling participants to expand their reach to international markets,”, he explained further.
Shehu Usman, the chairman of Mile 12 International Market, Lagos, described the MOU as a mutually beneficial partnership poised to revolutionise 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 community.
“This partnership is a win-win situation. The Lagos Commodities and Futures Exchange (LCFE) 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 stated.
Usman highlighted the extensive efforts undertaken to educate market members about the advantages of the agreement, saying : “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 Lagos State Government, we are optimistic that this initiative will run smoothly and benefit everyone involved.”
The chairman also emphasised the importance of the initiative in addressing critical challenges such as food accessibility and post-harvest losses.
“Our primary goal is to ensure food is readily available to everyone. With Lagos’ population projected to grow from the current 22 to 25 million and
increase from 30 to 35 million in a few years, this partnership will play a vital role in meeting demand and reducing food shortages,” he added.
Usman highlighted the necessity of continuous education to foster understanding and acceptance among stakeholders. He compared the
process to the initial skepticism surrounding point-of-sale (POS) systems and the introduction of raffia baskets to reduce waste, both of which 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’re 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,” he noted.
This understanding, according to Usman, will lead to significant progress for market stakeholders and the entire Lagos State, given the right input and cooperation.