The Securities and Exchange Commission Reports Record Value of Collective Investment Schemes
The Securities and Exchange Commission (SEC) has recently announced a milestone achievement, revealing that the value of its Collective Investment Schemes (CIS) surpassed N3 trillion in the year 2024.
Dr. Emomotimi Agama, the Director-General of SEC, shared this significant update in a statement released in Abuja, highlighting the importance of CIS in the investment landscape.
Agama explained that CIS offers investors a unique opportunity to diversify their risks by pooling their investments in a variety of companies. This approach provides an alternative to direct individual investments and offers a level of risk mitigation.
According to Agama, “With CIS, an investor can access a diversified portfolio of investments in multiple companies through a single route. This not only reduces risk but also broadens investment opportunities and helps in stabilizing market fluctuations.”
He emphasized the accessibility of CIS for novice investors, as the funds are managed by professionals who navigate market dynamics on their behalf, making it a suitable option for those looking to enter the investment space.
Capital Market Contributions and Economic Development
Aside from the success of CIS, Agama also shed light on the vital role of the capital market in Nigeria’s economic development, particularly during the Central Bank of Nigeria’s bank recapitalization initiative in 2024.
During this period, the capital market played a crucial role in supporting the CBN’s regulation to increase bank capital by raising N2.2 trillion for banks and providing assistance to other financial institutions, showcasing the market’s resilience and contribution to the economy.
Infrastructure Funding and Long-Term Projects
Agama further emphasized the significance of the capital market in funding long-term projects, especially through government bond issuances aimed at infrastructure development.
He stated, “The capital market serves as the primary source for long-term capital, and relying solely on the money market for funding such projects could lead to failure.”
The efforts of the SEC reflect the critical role of the capital market in stabilizing Nigeria’s economy, driving growth, and supporting sustainable development initiatives.
