Nigeria: SEC Backs Mutual Fund Growth With N18.2 Billion, Says Official

The Securities and Exchange Commission (SEC) played a pivotal role in fostering the growth of the Fund Management industry in 2023 by approving new mutual funds totaling N18.20 billion.

Additionally, SEC supported discretionary/non-discretionary investment products with N17.60 billion, as disclosed by the Director-General of the Commission, Mr. Lamido Yuguda, during a press briefing after the Capital Market Committee (CMC) meeting in Abuja on Friday.

Funds management entails the oversight and management of a financial institution’s cash flow. The fund manager ensures that the maturity schedules of the deposits align with the demand for loans, considering both liabilities and assets that impact the bank’s ability to issue credit.

Yuguda highlighted that SEC approved five infrastructure fund shelf programmes amounting to N1.5 trillion, marking a significant stride forward.

Furthermore, the Commission amended rules governing digital assets and established a dedicated Digital Exchanges (DEX) Division tasked with supervising all duly licensed digital asset platforms.

Yuguda stated, ”On Market Supervision, the commission has intensified its supervisory efforts, focusing on fund managers and conducting inspections to address vulnerabilities and enhance stability.”

“This has led to the implementation of corrective measures aimed at strengthening the overall health and stability of the fund management industry.”

“Progress has been made in implementing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations and addressing deficiencies identified in the Financial Action Task Force (FATF) Mutual Evaluation Report.”

“The Commission has collaborated with the nation’s regulatory and law enforcement agencies to ensure Nigeria’s removal from the FATF grey list.”

Yuguda further announced that the Commission would inaugurate a Securities Issuers Forum to discuss attracting more issuances to the market and host a roundtable on leveraging crowdfunding to support Micro, Small, and Medium Enterprises (MSMEs) in May.