Nigeria’s mutual fund industry is experiencing a significant resurgence, with total Net Asset Value (NAV) climbing by a remarkable ₦1.99 trillion in just six months—an impressive 50% growth from ₦3.98 trillion in December 2024 to ₦5.98 trillion by June 2025, according to the latest data from the Securities and Exchange Commission (SEC).
This builds on the 78% year-on-year growth recorded in 2024, highlighting investor appetite for regulated, diversified financial instruments amid tightening monetary conditions and persistent inflation. A key driver of this surge has been the unwavering dominance of money market funds, which now command over 52% of the industry’s total NAV.
Money market funds, known for their short-term, low-risk investment approach, attracted the lion’s share of new inflows. Their NAV nearly doubled within six months, rising from ₦1.68 trillion in December 2024 to ₦3.14 trillion by June 2025. The sharp rise reflects both investor flight to safety and the growing attractiveness of yields on Treasury Bills, commercial papers, and other fixed-income instruments.
With benchmark interest rates remaining elevated and inflation hovering around 22%, many retail and institutional investors are opting for stable income-generating assets. In this environment, money market funds offer not just preservation of capital but also competitive annualized returns exceeding 14-16%, depending on fund strategy and duration.
The number of SEC-registered mutual funds also expanded, rising from 187 to 205, a 9.6% increase in the first half of the year. This increase points to growing innovation in fund offerings and a broadening investor base looking beyond traditional savings and equities.
As the Central Bank of Nigeria continues to manage liquidity and inflation through restrictive policy tools, the attractiveness of money market instruments—and by extension, mutual funds—may persist for the remainder of 2025.
Analysts believe continued fiscal reforms, better financial literacy, and improved digital onboarding processes are helping mutual funds gain ground as a trusted investment vehicle, especially among younger, tech-savvy Nigerians.
Whether for capital preservation or yield optimization, mutual funds—especially those in the money market category—are increasingly becoming a mainstay in Nigeria’s evolving investment landscape.
