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The Securities and Exchange Commission (SEC) has announced that the value of collective investment schemes (CIS) in Nigeria has exceeded ₦3 trillion as of 2024.
This milestone was disclosed by the SEC Director-General, Emomotimi Agama, during a media briefing in Abuja on Wednesday. Agama highlighted the benefits of CIS as an alternative investment option for Nigerians, enabling them to pool resources into a diversified portfolio of assets, thereby reducing investment risks compared to direct investments in individual companies.
“Collective investment schemes provide a safer and more efficient avenue for Nigerians, especially those unfamiliar with market dynamics,” Agama stated. He explained that funds in CIS are managed by professionals who navigate the complexities of the market on behalf of investors. “If you do not understand the market, a CIS is a more secure option for your investments,” he advised.
Agama also underscored the pivotal role of the capital market in driving economic growth. He noted that in 2024, over ₦2 trillion was raised to recapitalize banks, demonstrating the market’s ability to support critical sectors of the economy.
The Director-General emphasized the importance of the capital market for infrastructure financing, stating that long-term projects essential for economic development require funding mechanisms that the capital market uniquely offers.
To enhance efficiency and accessibility, the SEC has introduced several reforms, including reducing the time to raise capital to just 14 days—a significant improvement from the previous two-year process. The adoption of e-offering platforms has further simplified investment opportunities, allowing Nigerians to invest conveniently via mobile devices.
Looking ahead, Agama expressed optimism about the passage of the Investments and Securities Bill 2024, which aims to strengthen the regulatory framework and further bolster the capital market’s role in national development.
“The SEC is committed to transforming Nigeria’s capital market into a cornerstone of economic growth and development,” Agama affirmed.
In a related development, the SEC has issued a warning to capital market operators, urging them to renew their registrations for 2025 by January 31 or face severe penalties, including exclusion from market activities.
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