By Stears

Nigeria’s asset management industry is entering a more competitive phase. Industry AUM rose 71.2% year-on-year to ₦10.1 trillion in 2024, according to analysis from Agusto & Co., driven by greater retail participation, rising demand for dollar-denominated portfolios, and broader access through digital investment platforms. Collective investment schemes grew to ₦3.74 trillion, representing 37% of industry assets, while industry AUM is projected to exceed ₦16 trillion by 2026. The headline growth is strong, but the structure of that growth deserves closer scrutiny.

Much of the momentum has sat in money market and fixed-income products, and for good reason. The CBN raised the monetary policy rate from 18.75% to 27.50% in 2024, while the stop rate on the 364-day Treasury bill reached 23.5% in November 2024. Fixed-income returns at those levels will always attract investor demand. But as the rate environment becomes less supportive, a market built mainly around high-yield fixed income will need stronger answers for investors whose needs go beyond short-term income.

That makes product strategy the next competitive challenge. The NGX All-Share Index returned 37.65% in 2024, yet Nigeria’s 20 equity mutual funds held a combined NAV of ₦170.74 billion as of March 2026, just 2.02% of the total mutual fund industry. Money market funds, by comparison, accounted for 64.90%. Strong equity market performance has not translated into a scaled pooled equity category. For asset managers, that gap is the opportunity: converting a larger asset base into deeper product relationships across fixed income, equities, dollar products, and selected alternatives.