The Niger State Government has signed an agreement with the Lagos State Rice Mill and Lagos Commodity Future Exchange to produce 300,000 tons of paddy rice annually on 50,000 hectares of farmlands across the North Central state.
The agreement is part of the Memorandum of Understanding (MOU) recently signed by the Lagos State, Babajide Sanwo-Olu, and the Niger State Governor, Mohammed Umar Bago, on food production and supply.
According to a post by the Senior Special Assistant to the Lagos State Governor on New Media, Jubril Gawat, on his official X (formerly Twitter) account, Lagos State is expected to become the major off-taker of paddy rice from Niger State, with the new agreement.
Gawat also noted that with the agreement, the 3-year off-take programme will enhance rice production and aggregation in Lagos State.
Lagos Rice Mill operations to be significantly enhanced
The post reads,
- ‘’In continuation of the recently signed Memorandum of Understanding (MoU) between the Governor(s) of Lagos State, Mr Babajide Sanwo-Olu and Governor of Niger State, Hon Mohammed Umar Bago, the Niger State Government in collaboration with the Lagos Rice Mill and Lagos Commodity Future Exchange, has finalized a significant Memorandum of Understanding (MoU) to enhance rice production and aggregation.
- ‘’This means Lagos State becomes the major off-takers of Paddy from Niger State. This will significantly enhance the Lagos Rice Mill operations on a sustainable basis. This program is a 3-year off-take program.
- ‘’The agreement was sealed at the Government House Minna, where the Chairman Niger Foods Security Systems and Logistics Company, Sammy Adigun, signed on behalf of the State Government while the Lagos Special Adviser on Agriculture, Dr Oluwarotimi Fashola (managing the Lagos Rice Mill) and the CEO of Lagos Commodity and Future Exchange, Dr Akinsola Akeredolu signed on behalf of the Lagos State Government.’’
N100 billion funds to be raised by Lagos Commodities Exchange
The post also noted that the Lagos Commodities Exchange will raise N100 billion in food security funds from the capital market to support the Niger State Commodity ecosystem.
He added,
- ‘’Under the terms of the agreement, 300,000 tons of paddy will be produced annually on 50,000 hectares of farmlands across Niger State.
- ‘’The Lagos Commodities Exchange will raise N100 billion food security fund from the capital market in the medium to long term, to support the Niger State Commodity ecosystem.
- ‘’Governor Bago hailed the agreement as unprecedented and aligned with President Tinubu’s food security agenda, expressing readiness to engage other states for mutual benefits and private sector growth.’’
What you should know
Nairametrics had earlier reported that the Governors of Lagos and Niger state had signed an MoU in Lagos, initiating a collaboration aimed at leveraging their unique advantages.
This partnership is intended to ensure a steady flow of agricultural products to consumers.
This agreement, known as the “Produce for Lagos Initiative,” is an effort by both states to participate in the Emergency Food Security Initiative, planning to cultivate thousands of hectares to maintain a consistent food production and supply chain.
Recall that in March March 2016, the Lagos State Government led by the then Governor, Akinwumi Ambode and his then Kebbi State counterpart, Atiku Bagudu, signed a memorandum of understanding for the production of made-in-Nigeria rice, then called LAKE rice.
This move, according to the 2 governors, was in fulfilment of the promises of former President Muhammad Buhari in 2015 to grow agriculture and ensure food sufficiency.
However, the initiative appeared to have gone the way of some government programmes as it went comatose after initial success.
