Nigeria Sets Sights on $128 Trillion Global Asset Market as Mutual Funds Surge

Nigeria is positioning itself to tap into the booming $128 trillion global asset management market, buoyed by a significant rise in local assets under management (AuM). According to the 2025 State of Enterprise Report by EnterpriseNGR, Nigeria’s AuM jumped from N68.06 billion in 2023 to N121.82 billion in 2024, marking a 79% increase. This surge reflects rising trust among Nigerians in the country’s investment professionals and financial institutions.

A key driver of this growth is the performance of Collective Investment Schemes (CIS), particularly mutual funds. In Q1 2025 alone, mutual funds attracted over N1 trillion in new investments, pushing the total CIS value to N4.94 trillion. The Net Asset Value (NAV) of CIS rose by 77.68% year-on-year, with mutual funds accounting for 96% of all CIS assets. The number of mutual funds rose from 144 in 2023 to 181 by March 2025, showing expanding investor participation.

Other segments of the investment market also showed promising results. Exchange Traded Funds (ETFs) listed on the Nigerian Exchange gained 21.74%, reaching a value of N12.77 billion. Infrastructure funds grew by 39.38% to N131.94 billion. These figures indicate a broadening investment appetite among Nigerians for diversified and innovative asset classes.

Despite the positive outlook, not all areas of the market flourished. Bond and fixed-income funds suffered a 31.76% decline in value due to rising interest rates, reducing their share of total CIS assets to just 5.13%. Experts explain that bond values typically fall when interest rates climb, making them less attractive to investors during such periods.

Industry experts believe Nigeria is at a crucial juncture in its investment evolution. With effective implementation of the Investment and Securities Act (ISA) 2024 and continued focus on transparency and investor protection, Nigeria could transition from a promising frontier market to a global financial hub. Financial leaders, including EnterpriseNGR CEO Obi Ibekwe and NEXIM Bank’s Tayo Omidiji, emphasize the importance of long-term, inclusive growth and policy stability to attract both local and global investors.

Source: The Sun