The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama has stated that its Collective Investment Schemes rose to more than N3 trillion in 2024.

Dr. Agama who made this known during an interaction with journalists in Abuja.

According to him, collective investment schemes are a part of the market system that allows people to diversify their risk via different angles besides going straight to the companies to invest.

He said: “In the collective investment schemes, you get a bucket of shares and ask people to invest. Therefore, if you are investing through a collective investment scheme, you probably will be investing in 10 companies via 1 route as different from going to invest directly in any company.

“It reduces your risk, it diversifies your potential and of course takes care of the ups and downs in the market whenever it does exist and it is for us a very good area for Nigerians to invest in because when you do not understand it, do not go into it. With a collective investment scheme, you do not need to understand it because someone is there to understand it for you and invest on your behalf, understanding the vagaries of the market, its dynamics and how it runs.

“As you are all aware, the banks are a very important element in our development and economic sphere. Last year 2024, the Central bank came up with a regulation to increase capital for all banks. Many people thought it was too daunting a task for the Capital market. However, where else will the banks who already loan money short term get money from, other than the Capital Market?

“But of course, the Capital Market came to the rescue. For all of the issuance that happened in the market last year, we were able to raise more than N2 trillion, precisely about N2.2 trillion for the banks, which means the Capital Market is actually the element that helps to galvanize growth and development.

“And the only place you can get long-term capital for infrastructural development is the Capital Market. There has always been this mistake of people going to the money market to loan money that will be used for long-term projects. It is a recipe for failure.

“The only place you can get that kind of money that you need for long-term projection that you need in achieving the goals of the government, the goals of the institution is the Capital Market”, he added.