Nigeria’s collective investment schemes (CIS) have recorded significant growth, with total assets under management (AUM) rising from N3.2 trillion to N10 trillion within the last two years. The Securities and Exchange Commission (SEC) described the increase as a sign of growing investor confidence and stronger participation in the country’s financial markets.
Speaking at an event in Lagos, SEC Director-General Dr. Emomotimi Agama said the growth was supported by improved market performance, increased foreign investment, and a rise in market capitalisation.
Despite the impressive figures, financial experts warn that inflation and the depreciation of the naira may be making the growth appear larger than it really is. While the total value of investment funds has increased sharply in naira terms, many investors may not be experiencing the same level of growth in their actual purchasing power.
The N10 trillion represents money invested by individuals, businesses, and institutions through financial products such as mutual funds, Real Estate Investment Trusts (REITs), Exchange-Traded Funds (ETFs), unit trusts, and investment trusts. These funds are managed by professional asset managers on behalf of investors.
According to industry experts, investor funds are not directly held by asset management companies. Instead, they are kept by independent custodians, providing an extra layer of security and helping to protect investors’ money.
This safeguard became necessary after previous cases of poor fund management in the sector. Some asset managers were accused of mixing client funds with company funds, exposing investors to unnecessary risks. In response, the SEC introduced stricter regulations, stronger oversight, and tougher penalties for violations. These reforms have helped restore confidence and attract more investors into collective investment schemes.
Although the industry has become safer, experts caution that investors should not judge a fund simply by its size. A large asset base does not always mean better performance. Investors are encouraged to focus on returns, risk management, and the quality of fund managers.
One major challenge remains inflation. Nigeria’s inflation rate reached 15.69 percent in April 2026, making it essential for investment returns to exceed that level. Some money market funds and equities have generated returns above inflation, while certain investment products have delivered even higher gains.
However, not all funds perform equally. Some investors may still be losing value if their investments are not growing faster than inflation. This means that even though account balances may look larger, the money may buy less than before.
The weakening naira has also affected how investment growth is measured. When a currency loses value, asset prices often rise in nominal terms, creating the appearance of growth. As a result, a tripling of assets under management may not translate into a similar increase in real wealth.
Experts agree that Nigeria’s investment industry has made genuine progress through stronger regulations, better governance, and growing investor participation. However, they stress that the most important measure of success is not the total amount invested but the real return earned after inflation is taken into account.
For investors, the key lesson is clear: focus on the actual value of returns rather than headline figures. Understanding inflation and choosing quality fund managers will help determine whether investments are truly growing or simply keeping up with rising prices.
