Circular on Mandatory Registration of Collateral Management Companies, Warehouse Operators and Warehouses

The Securities and Exchange Commission (SEC) is empowered under Section 3(3)(m) and (n) of the Investments and Securities Act, (ISA) 2025, to register and regulate entities operating within the commodities trading ecosystem. To give effect to these provisions, the Commission has made Rules on Commodity Exchanges and Trading Platforms; Warehouse Receipt Systems; Collateral Management and Warehousing Operations which can be accessed on the Commission’s website via Rules and Regulations - Securities and Exchange Commission, Nigeria. Accordingly, the Commission hereby clarifies as follows:

1. This Circular applies to all existing and prospective Collateral Management Companies, Warehouse Operators, and Warehouses linked to commodity exchanges or involved in the issuance of electronic warehouse receipts for trading on a commodity exchange.
2. Operators already carrying on any of the above stated activities under an informal or transitional arrangement must apply for registration in line with the Act and the Rules made pursuant thereto. Current operations do not amount to automatic registration or an exemption from statutory registration requirement.
3. All existing entities operating within the scope of this Circular are hereby directed to submit a complete registration application within 90 days from the date of this Circular (the “Registration Deadline”). This deadline applies to all entities, unless the Commission communicates a different timeline in writing.
4. An operator would only be considered compliant upon submitting a complete application within the Registration Deadline. An application that is incomplete, or a failure to provide additional information within the timeframe set by the Commission, will not satisfy this requirement.
5. Detailed registration requirements, applicable guidelines, and prescribed forms are available on the Commission’s website under the Resources section (Forms, Templates, Checklists, Papers and Publications, FAQs).

Every entity whose operations are affected by these clarifications and directives is encouraged to engage with the SEC early in the registration process.

For any enquiries, please email registration@sec.gov.ng. The Commission may, at its discretion, issue additional transitional guidance, including interim operating conditions.

This Circular takes effect immediately.

Signed:

Management Securities and Exchange Commission, Nigeria