…As mutual funds hit N1trn in Q1
By Chinwendu Obienyi
Nigeria is stepping up efforts to get a slice of the $128 trillion global asset management market, helped by a 79 per cent jump in local investment assets.
This simply means more Nigerians are trusting investment experts with their money and the government wants Nigeria to become a bigger player in the global money and investment scene.
According to the 2025 State of Enterprise Report by EnterpriseNGR released at the weekend, assets under management (AuM) in Nigeria rose from N68.06 billion in 2023 to N121.82 billion in 2024, a clear sign of growing investor interest and trust in the country’s financial sector.
The report, titled Insights into Nigeria’s Financial and Professional Services Sector, also shows that global asset management recovered in 2024, increasing by 12 per cent to hit $128 trillion. This bounce back follows a drop of nearly 10 percent in 2022.
Driving much of Nigeria’s growth are Collective Investment Schemes (CIS), better known as mutual funds. These funds pooled over N1 trillion in new investments in the first quarter of 2025 alone, pushing the total value of assets under CIS to N4.94 trillion, up from N3.98 trillion at the end of 2024.
It shows growing interest in smart, group-based investing.
“The total Net Asset Value (NAV) of CIS in Nigeria rose sharply by 77.68 per cent year-on-year to a record N3.98 trillion, up from N2.24 trillion in 2023,” the report said. “This strong performance was mainly led by mutual funds, which grew by 79.81 per cent to N3.83 trillion, making up about 96 per cent of all CIS assets. The number of registered mutual funds also rose from 144 in 2023 to 172 in 2024, showing that more investors are getting involved.”
By the end of March 2025, the number of mutual funds had further increased to 181. Exchange Traded Funds (ETFs)—another type of pooled investment—also did well. The 12 listed ETFs gained 21.74 percent in value, reaching N12.77 billion. Infrastructure funds saw even bigger gains, growing by 39.38 percent to N131.94 billion, up from N94.66 billion.
Not every part of the market performed strongly, though. Bond and fixed-income funds lost value due to rising interest rates. These types of funds saw their value drop by 31.76 percent and now make up just 5.13 percent of total CIS assets. Experts say this is because bond prices usually fall when interest rates go up.
Still, many believe Nigeria’s investment market is at a turning point. With the right rules and policies in place, the country could build on this momentum and become a major player in the global financial space.
“Nigeria has a significant opportunity to tap into the $128 trillion global asset management industry if it can maintain momentum and build trust,” said Obi Ibekwe, Chief Executive Officer of EnterpriseNGR.
“To do this, we must fully implement the Investment and Securities Act (ISA) 2024. The sector must stay focused on investor trust, follow global best practices, and commit to long-term, inclusive growth.”
Sharing a similar view, Dr. Tayo Omidiji, a financial expert and Head of Strategy at NEXIM Bank, said the current growth in Nigeria’s fund market is not a short-term trend.
“The growth in Nigeria’s fund market is not just cyclical, it is structural,” Omidiji said. “Investors want safety, transparency, and good returns. Mutual funds and dollar-based investments are now giving that—even with inflation and currency risks at home. This is Nigeria’s time to step up. The world is watching to see if we can turn our potential into real results.”
With growing investor interest and new policies like the ISA 2024 opening more investment opportunities, experts note that Nigeria’s asset management industry is on track to grow from a rising market to a major financial hub that can attract investors from around the world.
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