SEC Eyes $500bn Boost From Formalizing Commodities and Warehouse Receipts
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has revealed that the formalization of commodities and warehouse receipts within the capital market has the potential to unlock an estimated $500 billion in dormant agricultural and mineral assets.
This disclosure was made by Dr. Emomotimi Agama, Director General of the SEC, during a national workshop organized by the Chartered Institute of Stockbrokers in Abuja on Tuesday.
Dr. Agama explained that this strategic move is designed to transform commodities and warehouse receipts into tradeable securities. He stated that such a development would significantly contribute to the diversification of the economy away from its traditional reliance on the oil and gas industry, thereby fostering new avenues for wealth creation across the country.
The Investments and Securities Act (ISA) 2025, according to Dr. Agama, provides the SEC with the necessary authority to drive development within this crucial sector. He clarified that the Act enhances the SEC’s regulatory focus, equipping it with the precision and power needed to manage a rapidly expanding market.
“Today, I speak not just about the Investments and Securities Act (ISA) 2025 as a legislative milestone, but as a strategic blueprint to propel Nigeria into the league of top global economies,” Dr. Agama conveyed.
He continued by saying, “This Act is not merely an update—it is a revolution. It dismantles legacy constraints, embeds global best practices, and positions our market as the engine room for national prosperity. The question before us is no longer if Nigeria can achieve a $1 trillion economy, but how soon—and the capital market, under this new Act, will be the accelerant.”
The SEC Director General also detailed that the Commission now possesses clear powers to shut down Ponzi schemes and pursue legal action against offenders. This new authority aims to put an end to “get-rich-quick” scams that undermine investor confidence in the market.
Additionally, investors are now protected for losses resulting from revoked dealer licenses, a long-sought safeguard that is expected to increase participation in the capital market. Dr. Agama concluded by stating that trust is the fundamental element of capital markets, without which liquidity diminishes.
