The Lagos State Government has announced plans to raise US $2 billion to revolutionize agriculture, especially, food production and guarantee food security.
Lagos State Commissioner for Agriculture, Abisola Olusanya revealed the plans and said the funds will be raised by floating Agricultural Commodities Notes in partnership with the Lagos Commodities and Futures Exchange (LCFE). As part of preparations some top officials of the state government held engagements with the management of LCFE, the second in the series.
“To catalyse its five-year Agricultural Road map, Lagos State is prepared to raise $2 billion from private sector participation in partnership with the LCFE by floating Commodity Notes. The state has strong capacity to raise medium and long-term funds to execute developmental projects. It had raised huge amounts from the financial market over the years without default. The government is fully committed towards total transformation of Agriculture in order to boost food production. We shall place premium on capacity building among others to drive our agricultural revolution,” said Olusanya.
Poor contribution to Agriculture
State’s Commissioner for Finance, Dr. Rabiu Olowo, noted that Governor Babajide Sanwo-Olu had re-affirmed his administration’s commitment towards Agricultural Commodities. Olowo lamented the poor contribution of Agriculture to the Gross Domestic Product of Lagos State and the need to reverse the trend.
“We have a new road map to transform agriculture. We need to raise funds for this at the LCFE. The contribution of Agriculture to the Gross Domestic Product (GDP) of Lagos State is less than two per cent. This is not heartwarming and we have to change the narrative. The good thing is that payback of the money we intend to raise is not contingent on sinking fund. The project will re-appraise itself. We shall work with competent financial advisers,” said Olowo.
The Managing Director, LCFE, Mr. Akin Akeredolu-Ale, also expressed optimism that LCFE shall provide opportunities for Lagos State Government to meet its financial obligations.
“The Lagos State Government estimates the population of Lagos at 22 million which is rapidly growing, calling the urgent need for food security. Lagos has the potential to be self- sufficient and has the potential to employ over one million people through capital market participation, public private participation and joint state partnerships etc. The capital market has been a source of funding for Lagos State in the past and this time will not be different. We are proposing that Lagos State Government lists an Exchange Traded Note (ETN) of N100 billion in the first instance on LCFE in a bid to fund the 5-year Agricultural Road Map,” Akeredolu-Ale said.
