The Securities and Exchange Commission (SEC) has announced that the value of Collective Investment Schemes (CIS) in Nigeria surpassed N3 trillion in 2024, marking a significant milestone in the country’s financial markets.
This was disclosed by the SEC Director-General, Dr. Emomotimi Agama, during a press briefing in Abuja yesterday.
Dr. Agama explained that CIS provides investors with a safer and more diversified approach to investment. By pooling funds into a portfolio managed by experts, individuals can spread their risks across multiple companies, reducing the uncertainties associated with direct investments.
“With a CIS, you could be investing in ten companies through one route, diversifying your portfolio and minimizing market fluctuations,” Agama said.
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He encouraged Nigerians, particularly those unfamiliar with market dynamics, to consider CIS as a reliable investment option managed by professionals.
Beyond CIS, Dr. Agama highlighted the capital market’s crucial role in Nigeria’s economic development. In 2024, the Central Bank of Nigeria’s (CBN) directive for banks to recapitalize was met with skepticism, but the capital market facilitated the process, raising over N2.2 trillion to strengthen the banking sector.
Unlike the money market, which is unsuitable for financing long-term goals, Agama noted that the capital market offers the necessary resources for sustainable development. He pointed to various government bond issuances geared toward infrastructure projects, emphasizing that these initiatives are vital for economic growth.
The SEC has introduced several reforms to enhance market efficiency and accessibility, including reducing the time required to raise capital to just 14 days, down from the previous duration of up to two years. Additionally, the adoption of e-offering platforms now enables Nigerians to invest conveniently using their mobile devices.
Dr. Agama expressed optimism about the forthcoming Investments and Securities Bill 2024, which aims to further strengthen market regulation and development.
