Economy
Mutual Fund Assets Down 15% to N223b in 2016
By Quantitative Financial Analytics
Nigeria’s mutual funds’ asset under management (AUM) took some beating in 2016, going down by about a whopping N40 billion, per data released by the Security and Exchange Commission (SEC) and analysed by Quantitative Financial Analytics.
The analysis reveals that the decrease in assets was due to cash outflows as the mutual funds collectively made gains of about N2.3 billion in the year under review.
The asset under management as at December 31, 2015 was N264 billion but by the same period in 2016, it has fallen to N224 billion.
Our cautionary analysis indicates that there was an estimated outflow of N141 billion and inflow of N99 billion in 2016.
The fund sector mostly hit by the outflow is the money market fund category which shed about N108 billion only to receive about N67 billions of inflows within the year.
The situation could have been worse if not for the additional 10 or more new mutual funds that got added to the stock in 2016.
This trend is a total opposite of 2015 when money market funds generated about N93 billions of inflows but only N10 billion worth of outflows, resulting in a 143 percent growth in Asset.
It is not surprising that money market funds lost so much of their assets to redemptions. The major reason could be the continued increase in interest rate which makes treasury bill and bond yields much more than what money market funds could offer.
Apart from Arm Money Market Fund and Stanbic IBTC Money Market fund that offer yields in the 17 percent range, the rest offer something in the 15 percent range, a far cry from the yields on bonds and Treasury bills.
Again, the evolution and preponderance of commercial papers in the Nigerian market is taking a toll on money market funds as such papers with their high yield are now competing with money market mutual funds for investible cash.
A major concern is that money market mutual funds are the heart and soul of the Nigerian mutual funds industry because they represent about 49% of the total mutual funds’ assets.
It is therefore a concern that whatever happens to money market mutual funds by way of massive redemptions will directly have an impact on the entire industry.
While the high interest rate environment may be good for some, may be to compensate for and manage inflation, it does not seem to be working for the mutual fund industry.
Contacts: in**@****************ia.com
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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