SEC Reports N3 Trillion Surge in Investment Schemes Amid Capital Market Reforms

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Olori Uwem

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Mar 18, 2024
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SEC Reports N3 Trillion Surge in Investment Schemes Amid Capital Market Reforms

The Securities and Exchange Commission (SEC) has reported a significant rise in Collective Investment Schemes (CIS), which have now exceeded N3 trillion in 2024, marking a major milestone in Nigeria’s capital market.

Speaking at a media briefing in Abuja, SEC Director-General Emomotimi Agama highlighted the growing role of CIS in providing Nigerians with a safer and more diversified investment avenue. Unlike direct stock investments, CIS allows investors to pool funds under professional management, reducing risks while maximizing potential returns.

Capital Market Driving Economic Growth

Agama underscored the capital market’s role in national development, citing its recent contribution to bank recapitalization, which saw over N2 trillion raised in 2024 to strengthen the banking sector. He also emphasized that long-term capital, facilitated through the market, is crucial for infrastructure financing and economic expansion.

Key Reforms & Policy Changes

To enhance market efficiency, the SEC has introduced e-offering platforms, enabling Nigerians to invest seamlessly via mobile phones. Additionally, regulatory reforms have cut down the time required to raise capital from two years to just 14 days, making the market more attractive to both local and foreign investors.

Looking ahead, Agama expressed optimism about the passage of the Investments and Securities Bill 2024, which aims to further strengthen market regulations and investor protection.

Call to Action for Investors

Encouraging broader participation, Agama advised Nigerians—especially those unfamiliar with stock market dynamics—to consider CIS as a viable investment option, ensuring their funds are managed by experts.

With Nigeria’s capital market undergoing rapid transformation, the N3 trillion milestone signals growing investor confidence and sets the stage for continued economic expansion in 2025.