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Nigeria’s NGX Money Market Mutual Fund (MMMF) sector recorded remarkable growth in 2025, driven by a sharp rise in net asset value (NAV) and increasing investor participation, even as average yields softened during the year.
According to valuation reports released by the Securities and Exchange Commission (SEC) for January 3 and December 24, 2025, the total NAV of money market mutual funds surged by 182%, rising from N1.68 trillion in 2024 to N4.74 trillion in 2025. This expansion reflects growing investor confidence in low-risk, highly liquid investment instruments amid economic uncertainty and volatile financial markets.
Investor participation also strengthened significantly. The number of unit holders increased from 353,940 in 2024 to 597,901 in 2025, showing that more Nigerians are turning to money market funds as a preferred savings and investment option for capital preservation and short-term returns.
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Despite the strong growth in assets, average yields declined over the period. Data shows that the average yield across all money market funds fell from 21.24% in 2024 to 17.19% in 2025. This moderation in returns largely reflects the impact of shifts in the Central Bank of Nigeria’s (CBN) monetary policy stance and changing interest rate conditions across fixed-income markets.
The combination of rising NAV and softer yields suggests that investors prioritised safety and liquidity over high returns, especially when compared with more volatile asset classes such as equities and long-term bonds. For many investors, locking funds into short-term instruments offered reassurance in an environment marked by inflationary pressures and policy tightening.
SEC data further shows that money market mutual funds accounted for over 62% of total mutual fund assets by December 2025, highlighting their dominance within Nigeria’s collective investment schemes. Leading fund managers, including Stanbic IBTC Asset Management, ARM Investment Managers, First Asset Management, United Capital Asset Management, and Guaranty Trust Fund Managers, controlled more than 80% of total sector NAV.
Looking ahead to 2026, analysts note that the outlook for money market funds will depend largely on movements in the CBN’s Monetary Policy Rate, broader macroeconomic trends, and the implementation of new SEC regulations. Revised capital requirements for portfolio managers and stricter operational standards are expected to reshape the sector, favouring well-capitalised fund managers.
Despite moderating yields, money market mutual funds are expected to remain a key investment vehicle in 2026, offering stability, liquidity, and relatively predictable returns for conservative investors navigating Nigeria’s evolving financial landscape.
