The commodity market is a significant driver of Nigeria’s economic output, contributing between one-third and two-fifths of the national GDP . But its growth and stability are hindered by systemic challenges such as inflation, market volatility, climate-related risks, insecurity, and regulatory unpredictability.
These factors create financing gaps for producers and traders, making it difficult to obtain capital through conventional means. In response, the Investment and Securities Act 2025 (ISA 2025) introduced legal recognition of warehouse receipts as a means of leveraging assets by commodity owners and derisking investment in the commodity market.
This article examines how the ISA 2025 framework supports the classification of warehouse receipts as tradable securities and assesses the extent to which this innovation enhances financial inclusion and deepens market efficiency in Nigeria’s commodities ecosystem.