Nigeria’s mutual fund industry recorded strong growth in 2025, with total assets under management reaching N7.672 trillion, driven by higher demand, attractive yields and rising investor confidence.
The performance reflects improved market conditions and the introduction of innovative investment products, as investors increasingly seek structured vehicles to preserve value amid macroeconomic pressures.
The figure represents a 100.16 per cent increase over 2024, rising from N3.833 trillion at the end of December 2024 to N7.672 trillion as at December 24, 2025. The growth trend highlights a strategic shift by Nigerian investors looking to hedge against rising inflation and exchange rate volatility, with strong inflows into mutual funds as investors pursue high-yielding, low-risk opportunities, particularly in fixed-income and dollar-denominated instruments.
A mutual fund is a collective investment scheme that pools funds from multiple investors and invests them in a diversified portfolio of assets such as equities, bonds or other securities, which are professionally managed on behalf of investors.
A review of fund categories showed that equity-based funds recorded full-year growth of N46.436 billion, rising to N79.642 billion from N33.206 billion in December 2024. Money market funds, which invest mainly in short-term instruments such as treasury bills, rose by N3.046 trillion to N4.745 trillion from N1.699 trillion. Bonds and fixed income funds, which focus primarily on debt securities, increased by N50.689 billion to N237.259 billion in 2025 from N186.57 billion at the start of the year.
Dollar-denominated funds, comprising Eurobonds and fixed income instruments, rose by N254 billion to N1.956 trillion as at December 24, 2025, from N1.702 trillion at the beginning of the year. Real Estate Investment Trusts also recorded significant growth, increasing by N383.289 billion to N483.055 billion from N99.766 billion.
Balanced funds rose by N29.057 billion to N83.514 billion in 2025, while ethical funds increased by N2.222 billion to N8.129 billion. Shari’ah-compliant funds also grew by N27.634 billion to N80.120 billion in 2025 from N52.486 billion at the start of the year.
Speaking on the performance of collective investment schemes, the Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, said the schemes had continued on an upward trajectory, noting that they provide investors with diversified exposure beyond direct investment in individual companies.
He said, “In the CIS, you get a bucket of shares and ask people to invest. Therefore, if you are investing through a collective investment scheme, you probably will be investing in 10 companies via one route as different from going to invest directly in any company.
“It reduces your risk, it diversifies your potential and of course takes care of the ups and downs in the market whenever they exist and it is for us a very good area for Nigerians to invest in because when you do not understand it, do not go into it. With a collective investment scheme, you do not need to understand it because someone is there to understand it for you and invest on your behalf, understanding the vagaries of the market, its dynamics and how it runs.”
The Managing Director of HighCap Securities Limited, David Adonri, said mutual funds have been widely embraced in developed economies as effective investment platforms and serve as vehicles for capital mobilisation for economic development. He noted that Nigerian investors are increasingly using mutual funds to diversify risk, particularly in the equities market, given that such investments represent exposure to a basket of securities.
Similarly, the Chief Operating Officer of InvestData Consulting Limited, Ambrose Omordion, said investment in mutual funds has continued to rise as more investors become aware of the range of options available within the asset class. He said, “Investment in mutual funds has over the years continued to increase especially as more investors become aware of the options this asset class provides. Going by the fact that mutual funds invest in various asset classes and are managed by professionals, investors are becoming more comfortable with the idea of investing their funds in any mutual fund that meets their investment needs, be it an equity fund, fixed income fund or a balanced fund. The increase in net assets is a result of the options which have become available to investors.”
