FSL Launches Commodity Fund to Boost Agric Investment

FSL Asset Management has officially launched its Commodity Fund, a strategic investment vehicle designed to channel non-bank capital into Nigeria’s agricultural ecosystem while offering retail and institutional investors regulated exposure to high-yield commodity instruments.

Operating as an open-ended unit trust scheme under Securities and Exchange Commission (SEC) guidelines, the fund focuses primarily on securitised agricultural contracts, commercial papers issued by leading agri-firms, and exchange-traded commodities listed on registered platforms such as the AFEX Commodities Exchange and the Lagos Commodities Exchange.

The fund requires a minimum initial subscription of N5 million for high-net-worth individuals and qualified institutional investors, with a minimum holding period of 90 days.

At the launch, FSL management outlined the firm’s strategy to bridge the multi-billion-naira funding gap facing agribusinesses across the country, noting that agriculture accounts for roughly 25 to 30 per cent of Nigeria’s GDP yet continues to face severe capital constraints.

Odukoya, speaking on behalf of the management team, said the fund was developed to solve two major market challenges: providing cheaper, flexible patient capital for agricultural production and processing, and protecting everyday investors from unregulated, high-risk commodity schemes that have proliferated in recent years.

He said: “With this commodities fund, we are creating a transparent, SEC-regulated gateway that allows investors to earn competitive real returns from high-growth agricultural assets while providing much-needed, lower-cost financing to legitimate operators across the agricultural value chain.”

The initiative aligns with broader efforts to deepen agricultural financing through structured products, commodity exchanges and institutional investment, as Nigeria seeks to boost food security, reduce import dependence and attract more private capital into the sector.

By offering a regulated alternative to informal commodity investment schemes, the FSL Commodity Fund aims to improve investor confidence, enhance transparency and support the growth of credible agribusinesses with access to affordable working capital and expansion finance.