The Securities and Exchange Commission has reported an increase in collective investment schemes, which have now surpassed N3tn in 2024.
The Director-General of the SEC, Emomotimi Agama, revealed this during an interaction with journalists in Abuja on Wednesday.
He explained that CIS offer an alternative investment route for Nigerians by allowing them to pool resources into a diversified basket of shares, thus minimising risk compared to investing directly in individual companies.
Agama emphasised the importance of CIS, noting that they provide a safer investment avenue as experts manage the funds and navigate the complexities of the market.
He advised Nigerians to embrace CIS, particularly those who may not fully understand the market dynamics. “If you do not understand it, do not go into it,” he said, explaining that with a collective investment scheme, the responsibility of managing the funds rests with professionals who are well-versed in the vagaries of the market.
In addition to the growth of CIS, Agama highlighted the role of the capital market in supporting the Nigerian economy, pointing out its significant contribution to the recapitalisation of banks in 2024, with over N2tn raised to bolster the banking sector.
He stressed that the capital market remains crucial for long-term economic development, particularly through its involvement in infrastructure financing and emphasised that infrastructure projects, which are vital for economic growth, can only be successfully funded through long-term capital, which the capital market is uniquely positioned to provide.
The SEC DG disclosed that the Commission has implemented measures to make the capital market more efficient and accessible, adding that the time to market for raising capital has been reduced to just 14 days, a drastic improvement from the previous lengthy process that could take up to two years.
He attributed this progress to the adoption of technology, including the introduction of e-offering platforms that allow Nigerians to invest through their mobile phones, making the process more convenient.
Looking forward, Agama expressed optimism about the passage of the Investments and Securities Bill 2024, which is expected to further strengthen the capital market. He believes that with the bill’s implementation, the capital market will continue to play a pivotal role in driving national development.
Agama concluded by reaffirming the SEC’s commitment to transforming the capital market into a key driver of economic growth and development.
The PUNCH reported that the Securities and Exchange Commission has warned that capital market operators who fail to renew their registration for the year 2025 by January 31 risk severe penalties and exclusion from market activities.
