FSL Asset Management has introduced an open-ended Commodity Fund designed to channel non-bank private capital directly into Nigeria’s agricultural ecosystem, providing retail and institutional investors with a regulated, high-yield investment option. The strategy was unveiled at a Lagos media briefing led by Chief Executive Officer Adetola Odukoya alongside key executives including Sunday Kadiri, Yussuff Abdulfatai, and Victor Adaha.
Operating as a SEC-regulated unit trust scheme, the vehicle focuses on securitised agricultural contracts, commercial papers from leading agri-firms, and exchange-traded commodities listed on platforms like the AFEX Commodities Exchange and the Lagos Commodities Exchange. The fund is tailored for high-net-worth individuals and institutional investors, requiring a minimum initial subscription of ₦5,000,000 with a mandatory 90-day holding period. By offering lower-cost, flexible financing to legitimate operators across the agricultural value chain, a sector accounting for 25% to 30% of Nigeria's GDP the scheme aims to bridge substantial funding gaps while simultaneously safeguarding everyday investors against unregulated, high-risk commodity schemes.
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In tandem with the Commodity Fund, FSL Asset Management introduced the ₦2bn FSL Balanced Fund to deliver moderate capital growth across a combination of equities, fixed income, and money market instruments. Requiring a minimum subscription of 100,000 units (₦100,000) and a 90-day holding requirement, this addition expands the firm's active mutual fund portfolio to four alongside its existing Money Market and Eurobond funds. Backed by its parent company FSL Capital, the asset manager currently oversees more than ₦50bn in assets under management with a Triple-B investment manager rating from Agusto & Co. As it works toward meeting the ₦5bn capital requirement for tier-one asset management firms, FSL plans to introduce dedicated equity and fixed-income funds later this year.
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