SEC Reports N3trn Milestone In Collective Investment Schemes For 2024

 The Securities and Exchange Commission (SEC) has announced that Collective Investment Schemes (CIS) in Nigeria exceeded N3 trillion in 2024, highlighting the growing appeal of the capital market as a robust investment avenue.

This development was revealed recently by SEC’s Director-General, Dr. Emomotimi Agama, during an interaction with reporters in Abuja.

He explained that CIS offers investors a means to minimise risk by diversifying their portfolios without directly investing in individual companies. “With collective investment schemes, you get a bucket of shares and invest in multiple companies through one route,” he noted.

“This reduces risk, diversifies potential, and shields investors from market volatility. Even those who lack a deep understanding of the market can benefit, as professionals manage the investments on their behalf.”

Beyond CIS, the SEC DG highlighted the significant role the capital market played in bolstering Nigeria’s economic growth. A key contribution was facilitating the Central Bank of Nigeria’s recapitalisation mandate for banks.

“In 2024, the Central Bank announced a directive for banks to increase their capital. Many believed the task was too ambitious for the capital market, but it rose to the occasion. Over N2.2 trillion was raised for banks through market issuances, demonstrating the capital market’s capacity to drive growth and development,” Dr. Agama stated.

He also noted the market’s contribution to infrastructure development, emphasising that long-term capital for such projects can only be sourced through the capital market. “Using short-term loans from the money market for long-term projects is unsustainable. The capital market remains the ideal avenue for securing funds to achieve national and institutional goals,” he remarked.

Dr. Agama highlighted reforms that have streamlined processes, making the market more accessible. “Previously, obtaining approval to raise capital could take up to two years. Now, with our reforms, approvals are granted within 14 days, provided all documents are in order,” he said.

Technological advancements have also played a significant role. The SEC’s e-offering platform allows Nigerians to invest using their phones without visiting banks or other institutions. “We are confident that the technological and procedural changes introduced in the last nine months have transformed the market, and this is just the beginning,” he stated.

Dr. Agama expressed optimism about the passage of the Investments and Securities Bill 2024, which is awaiting presidential assent. He described the bill as a comprehensive framework for market regulation and development, poised to further integrate the capital market into national economic development.

“The bill is a vehicle for Nigeria’s growth. We are confident it will receive presidential assent and become a tool to drive the nation’s economic ambitions,” he said.