Nigeria’s Mutual Fund Industry Surges to N7.67 Trillion Amid Rising Investor Demand
Nigeria’s mutual fund industry has experienced an unprecedented growth surge, with total assets under management (AUM) reaching N7.672 trillion in 2025. The impressive rise is attributed to strong investor demand, attractive yields, and innovative products that have captured the attention of both retail and institutional investors. This figure marks a 100.16% increase compared to 2024, when AUM stood at N3.833 trillion, highlighting a robust appetite for diversified investment options.
Experts say the growth reflects a strategic shift by Nigerian investors seeking protection against rising inflation and currency volatility. With economic uncertainties, many investors are turning to mutual funds as a safer, professionally managed alternative that spreads risk across multiple securities. Fixed-income and dollar-denominated instruments, in particular, have become popular as investors look for stable, high-yield returns.
Breaking down the numbers, equity-based funds grew to N79.642 billion, up from N33.206 billion, while money market funds soared to N4.745 trillion from N1.699 trillion. Bonds and fixed-income funds increased to N237.259 billion, and dollar funds, including Eurobonds, rose to N1.956 trillion. Real Estate Investment Trusts also recorded significant growth, rising to N483.055 billion. Balanced, ethical, and Shari’ah-compliant funds all saw steady gains, reflecting the diversity of products attracting investors.
Regulators and industry leaders highlight the role of collective investment schemes (CIS) in this growth. Dr. Emomotimi Agama, director-general of the Securities and Exchange Commission (SEC), noted that CIS allows investors to access a “basket” of securities without navigating individual company investments. “It reduces risk, diversifies potential, and ensures professional management,” he explained, emphasizing that mutual funds make sophisticated investment accessible to everyday Nigerians.
Industry professionals also point to increasing awareness and confidence as key drivers of the sector’s expansion. David Adonri, managing director of HighCap Securities, emphasized that mutual funds are widely used in developed markets to mobilize capital and reduce investment risk. Ambrose Omordion, COO of InvestData Consulting, added that investors now embrace mutual funds as a flexible option to meet diverse financial goals, whether through equity, fixed income, or balanced funds. The trend suggests that mutual funds are becoming a central pillar of Nigeria’s growing investment landscape.
source: Leadership