Nigeria’s Collective Investment Schemes (CIS) Net Asset Value (NAV) grew to N5.976 trillion in the first half of the year, driven by growing investor confidence in the Nigerian capital market and the schemes’ potential for returns.
Data released by the Security and Exchange Commission (SEC) as of June 27, 2025 revealed that, the Net Asset Value (NAV) of CIS stood at N5.976 trillion as against N3.978 trillion achieved in December 27, 2024, showing a gain of N1.998 trillion.
Review of the Funds showed that Equity Based Funds recorded half year growth of N16.564 billion to N47.767 billion from N31.2023 billion in December 2024. Money market funds, which invest mainly in money market instruments such as treasury bills, rose by N1.463 trillion to N3.144 trillion from N1.681 trillion, while Bonds and Fixed Income Funds primarily focus on debt securities up by N12.929 billion to N209.229 billion in H1 from N196.3 billion at which it opened for the year.
The CIS, regulated by the SEC, offers a diversified portfolio of investments, thus, allowing individuals and institutions to pool resources and achieve financial goals.
The growth in CIS assets reflects the increasing recognition of these investment vehicles as a viable option for investors seeking to benefit from professional management and diversified portfolios.
Dollar Funds comprising of Eurobonds and Fixed Income rose by N211 billion to N1.920 trillion on June 27, 2025 from N1.709 trillion at which it opened for 2025, while Real Estate Investment Trusts rose by N258.439 billion to N358.385 billion from N99.946 billion.
Balanced Funds increased by N11.023 billion to N65.741 billion in H1, while 2024, while Equity Based Funds, Shari’ah Compliant Funds, Specialized Funds, Infrastructure Funds and Exchange Traded Funds (ETF) grew to N6.771 billion, N5.812 trillion, N17.630 billion, N131.506 billion and N14.650 billion respectively in H1.
Capital market analysts attributed the surge in CIS assets in Nigeria to factors such as a robust regulatory environment, public awareness campaigns, and the availability of mid-term savings options.
Speaking on the performance of CIS, the director-general, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, disclosed that collective investment schemes performance had been on the increase, saying the schemes are part of the market system that allows people to diversify their risk via different angles besides going straight to the companies to invest.
He said, “in the CIS, you get a bucket of shares and ask people to invest. Therefore, if you are investing through a collective investment scheme, you probably will be investing in 10 companies via one route as different from going to invest directly in any company.
“It reduces your risk, it diversifies your potential and of course takes care of the ups and downs in the market whenever it does exist and it is for us a very good area for Nigerians to invest in because when you do not understand it, do not go into it. With a collective investment scheme, you do not need to understand it because someone is there to understand it for you and invest on your behalf, understanding the vagaries of the market, its dynamics and how it runs.”
The managing director of HighCap Securities Limited, David Adonri, said mutual fund investment had been widely embraced as a good investment platform in the developed economies, and serves as a vehicle for the mobilization of capital for economic development.
He noted that investors were now embracing mutual fund instruments to diversify their investment risks especially in the equities market, saying that since investments in mutual funds are like investment in a basket of securities.
Also, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion, said “investment in mutual funds has over the years continued to increase especially as more investors become aware of the options this asset class provides. Going by the fact that mutual funds invest in various asset classes and are managed by professionals, investors are becoming more comfortable around the idea of investing their funds in any mutual fund that meets their investment needs, be it an equity fund, fixed income fund or a balanced fund. The increase in net asset is as a result of the options which have become available to investors.”
