The Securities and Exchange Commission (SEC) has announced that the value of its Collective Investment Schemes (CIS) exceeded N3 trillion in 2024.
Dr Emomotimi Agama, SEC’s Director-General, revealed this in a statement issued in Abuja on Wednesday.
Agama explained that CIS allows investors to diversify risks by pooling investments in multiple companies, offering an alternative to direct individual investments.
“With CIS, an investor can invest in 10 companies through a single route, reducing risk, diversifying opportunities, and stabilising market fluctuations,” Agama stated.
He emphasised the ease of CIS for novice investors, as professionals manage the funds and navigate market dynamics on their behalf.
Capital Market Contributions
Beyond CIS, Agama highlighted the capital market’s role in Nigeria’s economic development, particularly during the Central Bank of Nigeria’s (CBN) bank recapitalisation initiative in 2024.
“The CBN’s regulation to increase bank capital seemed daunting, but the capital market stepped in, raising N2.2 trillion for banks and supporting other institutions,” Agama said.
Infrastructure Funding
He also underscored the market’s significance in funding long-term projects, particularly through government bond issuances for infrastructure development.
“The capital market is the sole source for long-term capital. Relying on the money market for such projects is a recipe for failure,” he added.
The SEC’s efforts demonstrate the capital market’s crucial role in stabilising Nigeria’s economy and driving growth.
