This document discusses regulating the Nigerian derivatives market. It provides context on derivatives and global regulations, assesses Nigeria's market and regulatory framework, and outlines steps needed to scale up regulation. Nigeria's framework is currently limited and does not adequately facilitate clearing, trading or risk management for derivatives. The document recommends expanding regulations for clearing, trade reporting, risk mitigation, business conduct and technology infrastructure to develop the Nigerian market and strengthen oversight by the Securities and Exchange Commission. Effective regulation is needed to manage risks and develop this financial market segment.