Nigerian Mutual Funds Surge by ₦1.99 Trillion in H1 2025, Driven by Money Market Investments
In the first half of 2025, Nigeria’s mutual fund industry experienced impressive growth, recording a net inflow of ₦1.99 trillion. According to data from the Securities and Exchange Commission (SEC), the industry’s total Net Asset Value (NAV) rose sharply from ₦3.98 trillion at the end of 2024 to ₦5.98 trillion by June 2025, marking a 50% increase in just six months. This comes after an already strong performance in 2024 when NAV grew by 78%, signaling increasing investor confidence in collective investment schemes.
The expansion was underpinned by the introduction of 18 new funds, bringing the total number of SEC-registered funds from 187 to 205 — a 9.6% increase. Investors are increasingly drawn to mutual funds due to their liquidity, stable returns, and ability to hedge against Nigeria’s volatile macroeconomic environment. The bulk of the new capital went into money market funds, reflecting their dominance and continued popularity, particularly among risk-averse investors navigating the high-interest rate climate.
Money market funds saw the most significant jump, with their NAV rising from ₦1.68 trillion in December 2024 to ₦3.14 trillion by mid-2025. These funds have become the preferred option for short-term investors seeking low-risk, high-yield alternatives amid ongoing monetary tightening and inflation. The increase in yields on instruments like treasury bills and commercial papers further attracted capital into these funds.
Other mutual fund categories also posted positive growth. Dollar-denominated funds rose from ₦1.71 trillion to ₦1.92 trillion, driven by FX volatility and currency hedging strategies. Real Estate Investment Trusts (REITs) surged to ₦358.38 billion, while equity-based funds saw modest gains despite ongoing market challenges. Balanced and fixed income funds also grew moderately, while thematic and specialized funds, such as those focused on clean energy and gender impact, expanded from ₦3.7 billion to ₦17.63 billion — reflecting growing interest in niche and sustainable investments.
Overall, the performance of the Nigerian mutual fund market in H1 2025 illustrates a deepening maturity and diversification among investors. The increasing trust in various fund types — especially money market and dollar funds — highlights the evolving strategies of Nigerian investors seeking to preserve and grow their wealth in a complex economic environment.
Source: Nairametrics