The Securities and Exchange Commission (SEC) has set its sights on unlocking a potential $500 billion from the commoditisation of agricultural and mineral resources through the institutionalisation of warehouse receipt systems and the expansion of commodity trading in Nigeria.
Speaking at a national workshop on the implementation of the new Investments and Securities Act (ISA) 2025 held in Abuja, the Director-General of the SEC, Dr. Emomotimi Agama, stated that the move is part of a broader vision to reposition the Nigerian capital market as a critical enabler of economic growth and diversification. He noted that agricultural produce and mineral resources, which are largely underutilised and often wasted across the country, hold significant value if harnessed properly within a regulated and transparent financial market structure.
Dr. Agama emphasised that the commoditisation of such resources would not only open up new investment channels but would also stimulate inclusive economic growth by creating wealth across rural and urban communities. He highlighted the need for a functional warehouse receipt system that ensures standardisation, quality assurance, and traceability of commodities, making them viable instruments for trade and investment.
He described the ISA 2025 as a revolutionary legal framework that expands the regulatory powers of the SEC and introduces innovative mechanisms to deepen the capital market. According to him, the new legislation provides the legal basis to support the commodities ecosystem by recognising warehouse receipts as financial instruments that can be traded like other securities. This legal backing, he said, will enhance investor confidence, promote accountability, and mitigate the risks traditionally associated with agricultural trading and storage.
Beyond boosting investment in the commodities market, Dr. Agama stated that the SEC is committed to clamping down on illicit financial schemes and unregulated operations that threaten investor funds. He noted that the ISA 2025 grants the Commission enhanced enforcement powers to shut down Ponzi schemes, prosecute fraudulent operators, and compensate investors in cases where registered market participants lose their operating licences.
The SEC boss further called on stakeholders across the financial services sector, regulatory institutions, and development agencies to support the Commission’s reform agenda. He urged them to view the capital market as a strategic tool for actualising Nigeria’s long-term economic vision, including the ambition to build a $1 trillion economy.
The event also served as a platform to sensitise participants on the opportunities embedded in the commodities and warehouse receipt market and the need for collaboration between the public and private sectors in unlocking its full potential. Dr. Agama assured that the Commission would continue to engage stakeholders in creating a market environment that is fair, efficient, and globally competitive.
With the institutionalisation of a structured commodities trading platform and a legally recognised warehouse receipt system, the SEC believes that Nigeria is poised to transform latent natural assets into active financial resources capable of driving sustainable national development.
