Investors’ confidence lifts collective investment schemes to N5.98trn in H1 2025
BY MOTOLANI OSENI
Collective Investment Schemes (CIS) in Nigeria surged to a record N5.976 trillion in the first half of 2025, driven by rising investor confidence, stronger public awareness, and the schemes’ growing reputation as a safe and diversified investment vehicle.
Data from the Securities and Exchange Commission (SEC) as at June 27, 2025, showed a N1.998 trillion increase from the N3.978 trillion recorded at the end of 2024.
The growth reinforces CIS as a preferred route for individuals and institutions seeking managed exposure to the capital market without the complexity of direct stock picking.
Money market funds led the pack, rising by N1.463 trillion to N3.144 trillion from N1.681 trillion, reflecting sustained demand for lower-risk investment options. Dollar-denominated funds, including Eurobonds and other fixed-income instruments, also gained N211 billion to reach N1.920 trillion.
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Real estate investment trusts posted strong performance, growing from N99.946 billion to N358.385 billion, while equity-based funds rose to N47.767 billion, up N16.564 billion from December 2024. Bond and fixed-income funds increased by N12.929 billion to N209.229 billion, while balanced funds added N11.023 billion to reach N65.741 billion.
Other asset classes such as Shari’ah-compliant funds, specialised funds, infrastructure funds, and exchange-traded funds also recorded varying levels of growth. Analysts attribute the broad gains to Nigeria’s maturing regulatory framework, increasing financial literacy, and the appeal of professional fund management.
Director-General of the SEC, Dr Emomotimi Agama, highlighted CIS as a strategic tool for portfolio diversification. According to him, the schemes provide a buffer against market volatility by offering investors exposure to a mix of assets without requiring in-depth knowledge of market dynamics.
He said the structure allows individuals to invest in a “bucket of shares” rather than risk individual company exposure.
Dr Agama explained that CIS offer an ideal solution for those seeking to invest without deep market expertise, as fund managers handle asset selection, allocation, and risk management.
Echoing this view, Mr David Adonri, Managing Director of HighCap Securities Limited, noted that mutual funds have gained ground globally as platforms for capital mobilisation and economic development.
He said Nigerian investors are increasingly recognising mutual funds as effective tools to spread risk, particularly in the equities market.
Mr Ambrose Omordion, Chief Operating Officer of InvestData Consulting Limited, added that the rising net asset values across different fund categories show growing investor trust in professional fund management.
He pointed out that the availability of funds tailored to varying investor needs—whether equity, income, or balanced, deepened market participation.
The consistent growth of CIS highlights their expanding role in Nigeria’s investment landscape, offering both institutional and retail investors a flexible and professionally managed channel to build wealth and navigate market uncertainties.
