Unlocking retail wealth: How asset management is becoming more inclusive in Nigeria
In Nigeria’s financial services landscape, asset management has long been regarded as the domain of institutions, high-net-worth individuals, and sophisticated investors. Ordinary households, young professionals, and small business owners were largely excluded, with barriers such as high entry thresholds, limited product variety, and inadequate awareness standing in the way.
That picture is changing. Over the past decade, and particularly in recent years, the Nigerian asset management industry has undergone a quiet transformation. What was once a niche is becoming mainstream. More Nigerians are gaining access to structured investment vehicles, more products are being designed with inclusivity in mind, and technology is bridging the gap between institutional expertise and retail demand.
This evolution matters. By democratising access to managed portfolios, Nigeria is laying the groundwork for a stronger savings culture, deeper capital markets, and new avenues for wealth creation. For an economy where inflationary pressures and currency volatility erode disposable incomes, inclusive asset management offers not just financial returns but long-term resilience.
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The growth of Nigeria’s asset management industry
The Nigerian asset management industry has witnessed rapid growth in size and sophistication. According to the Securities and Exchange Commission (SEC), total assets under management in collective investment schemes crossed ₦2 trillion in 2024, reflecting rising demand for mutual funds, money market funds, and other pooled vehicles. More than 150 registered mutual funds now operate in Nigeria, compared to fewer than 50 a decade ago. This growth has been driven not only by institutional allocations but also by a surge in retail participation, particularly in money market and fixed income funds.
Nigeria’s pension fund industry, with assets under management exceeding ₦18 trillion, remains the single largest institutional investor. Yet retail-focused asset managers are carving out a complementary role. The appetite for alternatives to simple bank deposits is growing, especially in periods of high inflation. By offering pooled access to government securities, corporate bonds, and equities, asset managers are bridging a vital gap between households and the capital market.
Why retail inclusion is rising
Several factors explain the recent acceleration of retail participation in asset management. One is product innovation. Asset managers have introduced products specifically designed for small savers. Money market funds with low entry points, systematic investment plans, and both naira- and dollar-denominated funds tailored for diaspora investors now allow households to start small, remain liquid, and gradually build long-term positions.
Technology has also transformed access. Mobile apps, e-wallet integration, and digital KYC processes have lowered onboarding costs and made it possible to serve thousands of small accounts efficiently. A young professional can now invest in a money market fund with as little as ₦5,000, track performance in real time, and redeem units directly into a bank account — all from a smartphone.
The regulatory environment has also evolved. The SEC has modernised rules governing collective investment schemes, requiring clear disclosures, risk categorisation, and independent custodianship. These measures improve transparency and safeguard investor funds, creating greater confidence among retail participants.
Changing investor behaviour is another driver. With inflation at 22.9 per cent in May 2025 and the naira experiencing recurring volatility, ordinary savers are increasingly understanding that simple bank deposits are inadequate for preserving value. Professionally managed funds offer an opportunity to hedge against inflation while accessing diversified investments.
The role of asset managers
Asset managers today are more than portfolio managers; they are enablers of financial inclusion. Their mandate goes beyond returns to include designing accessible products, educating investors, and distributing solutions at scale. For FSDH Asset Management, this inclusive approach is central to its mission. The company combines institutional credibility with a retail focus, ensuring that both large corporates and first-time savers can benefit from professional asset management.
Beyond offering products, FSDH has consistently placed emphasis on financial literacy. Public campaigns, webinars, and advisory sessions explain the mechanics of funds, risk factors, and the importance of disciplined saving. Education has emerged as a powerful lever. Many retail investors are unfamiliar with concepts such as compounding, diversification, or inflation-adjusted returns. By demystifying these, asset managers create not only clients but also informed partners who can sustain long-term wealth-building habits.
Collective investment schemes as an equaliser
The expansion of collective investment schemes has been central to retail inclusion. These funds allow multiple investors to pool their resources, which are then managed professionally across diversified asset classes. For retail clients, the benefit lies in diversification, professional management, and affordability.
Diversification spreads risk across securities that would otherwise be inaccessible to a single investor. Professional management ensures that asset allocation and security selection are handled by experts. Affordability means that with relatively small amounts, investors can gain access to portfolios that deliver meaningful returns. The growth of collective investment schemes from under ₦300 billion in 2013 to more than ₦2 trillion in 2024 underscores their role as the fastest-growing retail investment channel in Nigeria.
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Challenges and gaps
Despite these advances, challenges remain. Financial literacy is still low across large sections of the population, and misconceptions about investment persist. Distribution is concentrated in urban centres, leaving rural and semi-urban areas underserved. A trust deficit also lingers, as legacy issues in the wider financial sector have created scepticism even for credible operators. Additionally, the compliance costs associated with serving thousands of small accounts — from KYC to anti-money laundering checks — are significant and can strain managers.
Closing these gaps will require stronger collaboration among regulators, managers, fintechs, and civil society. Nationwide financial education programmes, simplified onboarding processes, and continued transparency in fund governance will be crucial to broadening participation.
The wider economic impact
Retail inclusion in asset management carries benefits beyond individual investors. By mobilising household savings, asset managers create a more stable domestic funding base for government and corporate issuers. This strengthens capital markets, reduces reliance on volatile foreign flows, and enhances economic resilience.
At a national level, broader retail participation means more patient capital available for infrastructure financing, SME credit, and long-term investments. This aligns with Nigeria’s broader ambition to transition from a consumption-driven economy to one anchored in savings and investment. For households, the benefits are tangible: asset management provides a pathway to financial independence, intergenerational wealth transfer, and resilience against economic shocks.
Looking ahead
The trajectory for asset management in Nigeria points toward greater inclusivity, deeper digital adoption, and broader impact. Over the next five years, growth is likely to be accelerated by the expansion of ESG-themed and Shariah-compliant funds that align with investor values. Fintech-driven solutions such as robo-advisory services will make investing as seamless as online banking. Cross-border products will attract diaspora Nigerians seeking local exposure, while closer collaboration with pension funds and insurers will deliver bundled savings-investment products to households.
The Nigerian asset management industry is undergoing a paradigm shift from exclusivity to inclusivity. While challenges remain, the direction of travel is clear. A more democratic and resilient market is emerging, one where retail savers can access the same professional expertise once reserved for institutions.
By expanding access, asset managers such as FSDH are not only deepening capital markets but also shaping a culture of disciplined saving and investing. In doing so, they are unlocking the potential of retail wealth as a catalyst for national growth.
Ultimately, the transformation of asset management is more than financial; it is social. By empowering millions of Nigerians to preserve and grow wealth, the industry is laying the foundation for a more resilient middle class, stronger households, and a more robust economy. Asset management is no longer a preserve for the few — it is becoming a tool for the many, and its impact will be felt for generations to come.
Margaret Agbonlahor, Senior Vice President, FSDH Asset Management
