CIS growth signals rising confidence in Nigeria’s capital market

The Nigerian capital market is witnessing a surge in investor confidence, as collective investment schemes (CIS) surpassed N3 trillion in 2024, according to the Securities and Exchange Commission (SEC). The milestone highlights the growing appeal of CIS as a safer and more efficient investment option for Nigerians navigating economic uncertainties.

Speaking in Abuja, SEC’s Director-General, Emomotimi Agama, described CIS as a critical financial tool that enables Nigerians to pool resources into diversified portfolios, reducing exposure to market risks associated with direct investments. He attributed the schemes’ popularity to their professional management, which shields investors from the complexities of market dynamics.

According to him, collective investment schemes are ideal for individuals who may not fully understand the intricacies of the capital market. With CIS, professionals manage the funds, ensuring investors are better protected. Agama urged Nigerians to consider this avenue as an alternative to high-risk ventures.

Beyond the N3 trillion milestone, Agama highlighted the capital market’s broader contributions to economic growth. He revealed that over N2 trillion was raised in 2024 to recapitalise banks, bolstering the sector’s stability. Additionally, he noted the market’s pivotal role in infrastructure financing, which is essential for Nigeria’s long-term development.

Agama also underscored the SEC’s efforts to improve the market’s efficiency and accessibility. The introduction of e-offering platforms and a reduced time-to-market for capital raising, now as short as 14 days, reflect the Commission’s commitment to leveraging technology to simplify investment processes.

Looking ahead, Agama expressed optimism about the Investments and Securities Bill 2024, which he believes will further enhance the capital market’s role in driving economic growth. He reiterated the SEC’s dedication to transforming the market into a cornerstone of national development.

As the SEC celebrates these advancements, the Commission has reminded market operators to renew their registrations for 2025 by January 31 or face strict penalties, including exclusion from market activities. The directive underscores the SEC’s resolve to maintain market integrity and ensure compliance among stakeholders.