The Securities and Exchange Commission (SEC) has announced a significant surge in Collective Investment Schemes (CIS), which reached over ₦3 trillion in 2024.
Speaking in Abuja on Wednesday, SEC Director-General Dr. Emomotimi Agama highlighted the importance of CIS in offering Nigerians a safe, diversified, and professionally managed avenue for investment.
“CIS enables individuals to invest in a range of companies through a single platform, reducing risks while maximizing potential returns,” Agama explained. “Unlike direct investments, CIS pools funds to spread investments across multiple sectors, providing stability during market fluctuations.”
Agama emphasized that CIS simplifies investment for the average Nigerian, as professional fund managers handle the complexities of the market.
In addition to the growth of CIS, Agama noted the pivotal role of the capital market in supporting Nigeria’s economic development, particularly during the recapitalization of banks mandated by the Central Bank of Nigeria (CBN) in 2024.
“The capital market raised approximately ₦2.2 trillion to assist banks in meeting the CBN’s recapitalization requirements. This demonstrated the market’s critical role as a reliable source of long-term funding,” Agama said.
Beyond banking, the market facilitated significant government bond issuances to support infrastructure projects. Agama stressed the importance of sourcing long-term capital for such initiatives, cautioning against relying on short-term loans from the money market.
“The capital market is the backbone for infrastructure development,” he added, underlining its indispensability in driving sustainable growth.
The SEC remains optimistic about the future of the capital market, encouraging Nigerians to explore CIS as a gateway to wealth creation and economic resilience.