Nigeria has set a bold goal of growing its economy to reach $1 trillion in Gross Domestic Product (GDP) by the year 2030. This ambition is rooted in the country’s desire to strengthen its economic influence, reduce poverty, and create opportunities for its large youth population. As of 2025, Nigeria’s economy is making progress, though the journey is still long.

One of the key enablers of this vision is the asset management industry, which includes mutual funds, pensions, insurance funds, and investment vehicles that pool and manage capital. This industry is growing quickly and has the potential to unlock much-needed financing for infrastructure, businesses, and innovation.

We examines Nigeria’s current economic standing, the contribution of the asset management industry, and what can be expected by 2026–2027.

Background: The $1 Trillion Goal

Where Nigeria Stands Today

As of early 2025, Nigeria’s GDP is estimated to be between $362 billion and $500 billion, depending on whether you’re using market exchange rates or purchasing power parity (PPP). Although this is still far from $1 trillion, the country is making gradual progress.

The Nigerian government has launched various economic reforms under the Eight-Point Renewed Hope Agenda, including:

• Removing fuel subsidies
• Unifying the foreign exchange rate
• Attracting foreign and local investments
• Encouraging export diversification

In Q1 2025, non-oil exports rose by 24.75%, reaching $1.79 billion, a positive sign of diversification. At the “Nigeria First” investment summit, the country received over $50 billion in investment pledges, showing strong investor interest.

However, growth remains modest. The World Bank forecasts GDP growth of around 3.7% to 3.8%, which is below the 7% annual growth target set by the government.

Asset Management Industry: A Strategic Growth Engine

The asset management industry in Nigeria is becoming one of the most promising sectors in the financial space. According to Agusto & Co., the industry is expected to exceed ₦10 trillion in assets under management (AUM) by the end of 2025. The industry has been growing at an average of 32.4% annually, driven by interest in mutual funds, pensions, and infrastructure funds.

Key segments include:

• Mutual Funds: These are growing fast. As of Q1 2025, the value of collective investment schemes reached around ₦4.94 trillion, up from ₦3.98 trillion in 2024. This shows strong confidence in savings and investment culture.
• Pension Funds: Nigeria’s pension industry continues to grow, with long-term capital that can be channeled into infrastructure and economic development.
• Infrastructure Funds and ETFs: These funds are also increasing in value, with infrastructure funds growing by 39% year-on-year.

Why This Matters

The asset management industry helps pool long-term savings from individuals and institutions. These funds can be used to finance roads, housing, energy, education, agriculture, and manufacturing — all critical to driving economic growth. According to industry experts, properly mobilized pension and mutual fund capital could be the difference-maker in achieving a $1 trillion economy.

Reforms and Policy Improvements

Regulatory Strengthening – The Securities and Exchange Commission (SEC) is enforcing tighter governance, risk management, and reporting standards in the asset management space. These improvements are making the industry more trustworthy and appealing to both local and foreign investors.

In 2024, the passage of the new Investment and Securities Act (ISA) provided a clearer legal framework for investment activities and protected investor rights. This is key to boosting long-term confidence.

Bank Recapitalization – Another policy move with long-term economic benefits is the recapitalization of commercial banks, due for completion by March 2026. Stronger banks mean more credit available to the private sector, including asset managers and businesses needing investment capital.

Challenges to Reaching the $1 Trillion Goal

Despite these positive developments, several major obstacles remain:

• Inflation: Nigeria continues to face high inflation, which erodes savings and reduces the value of investment returns.
• Currency Fluctuations: The naira has faced devaluation and volatility, making it harder for investors to plan long-term.
• Policy Inconsistency: While some reforms have been bold, there are still concerns about changes in direction and a lack of follow-through on key economic plans.
• Security Issues: Insecurity in various parts of the country affects investor confidence and limits business activity.

These challenges must be addressed if Nigeria hopes to maintain strong economic momentum and hit its growth targets.

Outlook for 2026–2027

Looking ahead, the years 2026 and 2027 will be critical in determining whether Nigeria stays on track toward a $1 trillion economy. Here are key trends and developments to watch:

i. Sustained Economic Growth

The government aims for 7% annual growth by 2027, but many analysts predict slower rates. Whether Nigeria can reach or exceed these targets depends on:

• Effective implementation of reforms
• Continued investment in infrastructure
• Stability in global oil prices (which still affect the economy)
• Greater diversification of the economy

ii. Deeper Role for Asset Managers

As Nigeria continues to build trust in its financial systems, more Nigerians are likely to invest in mutual funds, pensions, and other long-term vehicles. Asset managers will play a crucial role in:

• Financing infrastructure
• Providing liquidity to capital markets
• Supporting new businesses and industries
• Creating jobs through investments

iii. Capital Market Expansion

Nigeria’s stock market and bond market are expected to grow, supported by stronger financial regulation and increased listings. A deeper capital market will help attract more global investment.

iv. Global Investment Opportunities

Nigeria also hopes to tap into the $128 trillion global asset market by aligning its financial systems with international standards. Success here could bring billions in foreign capital into Nigeria.

v. Political and Policy Stability

Finally, consistent policies, a stable political environment, and effective implementation will be key. Investors prefer stable environments with clear rules. Ensuring fiscal discipline and reducing debt dependency will also help.

Forward approach

Nigeria has made notable progress in its journey toward a $1 trillion economy, though there’s still a long road ahead. The asset management industry has emerged as a major contributor, with rising levels of savings, investments, and financial inclusion.

Reforms are being implemented, confidence is building, and investors are showing interest. However, key challenges like inflation, weak infrastructure, policy inconsistency, and insecurity must be tackled decisively.

The years 2026 and 2027 will be a turning point. If the government sustains reforms, encourages private sector participation, and empowers institutions like pension and mutual fund managers, Nigeria could be well on its way to becoming one of Africa’s strongest economies.

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Important information

This document is intended for retail and institutional investors and/or private clients. You should not

act or rely on this document but should contact your professional adviser.

This report has been issued by Coremars Asset Management Limited, registered with the Securities and Exchange Commission – SEC as an approved Fund and Portfolio manager.

2025 Coremars Asset Management Limited – all rights reserved. This document can only be distributed or reproduced with permission from Coremars Asset Management Limited.

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Coremars Asset Management has received an affirmed long-term rating of “Bbb” and a short-term rating of “A2” from DataPro, a leading credit rating agency.

This investment-grade rating underscores the company’s solid financial standing, sound risk management practices, and strategic leadership within Nigeria’s competitive asset management landscape.

Announced on June 26, 2025, the rating reflects Coremars Asset Management’s key strengths, including a robust liquidity profile, a stable capital base, and a highly experienced management team. These attributes position the firm as a dependable financial institution committed to supporting Nigeria’s evolving asset management industry.

Despite a challenging macroeconomic environment marked by heightened competition and economic volatility, Coremars Asset Management has continued to demonstrate resilience and innovation. The company is actively developing tailored financial products to meet the dynamic needs of its clients, with a focus on inclusivity and market alignment.

Commenting on the development, Mr. Olawale Adebayo, Managing Director of Coremars Asset Management, stated:

“We are pleased with DataPro’s affirmation of our ‘Bbb’ rating. It reflects our dedication to financial stability, operational excellence, and sustainable growth. Our strategic priorities remain focused on strengthening our capital structure, optimizing our funding, and enhancing operational efficiency to deliver greater value to our clients.” 

Mr Chibuzor Oduche, Chief Investment Officer at Coremars Asset Management stated:

“This milestone brings us closer to the impact we aspire to make in the financial services sector. Our solutions are designed to grow our clients’ financial assets and contribute to the broader economy. Hereby contributing significantly to the asset management industry on all fronts”. 

Coremars Asset Management maintains that its sustainability and competitiveness are closely tied to the health and growth of the financial ecosystem. The firm continues to play an active role in promoting financial inclusion by providing accessible and sustainable investment solutions to a broad spectrum of clients, including individuals, High-Net-Worth Individuals (HNIs), and emerging corporates.

By leveraging technology and adopting customer-focused innovation, the firm ensures efficient service delivery and seamless digital experiences. Continuous learning from stakeholders—including clients, employees, and regulators—remains central to Coremars’ approach to responsible business, shared value, and long-term impact.

Coremars Asset Management is a licensed fund and portfolio management firm regulated by the Securities and Exchange Commission (SEC) of Nigeria.

My Goal Is To Establish Coremars Asset Management as A Leader in Wealth Management” – Adetutu Awojobi, Head, institutional Sales, Coremars Asset management

ADETUTU Awojobi, the Head of Institutional Sales at Coremars Asset Management studied Banking and Finance at Covenant University, and capped it with a Master’s in Risk Management from the University of Lagos. After her youth service at UBA in 2012, she joined GTBank working in the Retail Banking division where she led the retail marketing teams in Ikoyi and Victoria Island.

When she left the bank in 2020, it was for Coremars Asset management, an asset and wealth management firm where she has been a key part of the management team and contributing immensely to the company’s profitability.

As the Head of Institutional Sales, she is responsible for developing and executing marketing strategies to sign on key accounts. She equally manages existing client relationships by providing exceptional customer services and investment advisory services. According to her, her goals for her department is to attain 100% customer satisfaction with all clients just as she wants to ensure the firm meets its financial targets. Most importantly, her goal is to establish Coremars Asset Management as a recognized leader inn wealth management in the country.

On those that have impacted her life the most, she said “My parents have always been my greatest influence, my late father always made us know the importance of a solid education and building capacity while my mother taught us the importance of financial independence as a woman”.

She believes women are often overlooked and underestimated in workplaces. To tackles this, she called on women to force themselves out of the existing stereotypes by providing themselves and delivering result wherever they work. “We must refuse to let ourselves be doormats in the workplace”, she stressed.

On the indelible experiences she had in the course of her career, Awojobi pointed out that she has had many but the one that sticks our were times when she exceeded her clients expectation, when she was able to find solution to her clients needs; and also when she received her promotion. In many firms she says, biases, competition, and evolving industry demands can present obstacles, but woman must be ready to stand firm and resilient and face the challenges with perseverance. Believing that resilience allows women to push through set backs so as t o seize leadership opportunities, she also changes then to be ready to embark on continuous growth if they must shake off gender biases.

“Taking every opportunity to build capacity whether through formal education, professional training, mentorship, or hands-on experience helps woman stay competitive and excel in their fields. Ultimately, the combination of resilience and continuous learning empowers women to break barriers, advance in their careers and contribute meaningfully to the workplace”. Awojobi reasoned.

The wealth management sub-sector worldwide is no doubt going through a transformative stage, with operations and activities moving from the traditional approach to a more sophisticated and technological approach with heavy reliance on data analytics and artificial intelligence for making decisions.

Artificial intelligence (AI), and particularly generative AI, has become popular in wealth management mainly because of its ability to reshape the entire customer journey, creating more personalised and efficient experiences for clients. Leading wealth management firms like Morgan Stanley and JP Morgan Chase have continued to heavily leverage GenAI to curate customised customer experiences, analyse investment performances and make better investment decisions.

In Nigeria, the financial services sector has experienced significant technological advancements over the years. This is evident in the rapid influx of fintech firms into the country, with traditional banks and wealth management firms playing catch-up. Unfortunately, GenAI deployment in Nigeria has been rather slow due to several important factors, one of which is the high cost of deployment. GenAI solutions are quite expensive due to their ability to process complex data and run simulations in the shortest possible time. The cost implications would significantly impact operating costs and consequently profitability. It is no doubt that many wealth managers would require time to properly plan and budget for its deployment in their business. Other challenges identified are data privacy threats, legality of GenAI output and weak data foundations, especially in a country like Nigeria. Nevertheless, the rewards to be gained in customer experience, better-optimised operations and overall increase in profitability make it all worth it in the end.

Furthermore, over time, there has been the fear that advanced technologies like GenAI would slowly displace humans from their jobs. The reality of this concern is that GenAI has sought and continued to enable financial advisors to become more efficient professionals. Concerns about GenAI’s role are genuine, especially now when investors’ demand for human interaction is evolving; therefore, investment advisors must understand GenAI’s impact and learn to leverage it for long-term relevance. For instance, in 2023, Morgan Stanley launched a new internal AI assistant called AI @ Morgan Stanley Assistant which was designed to help Morgan Stanley financial advisors and support staff access and digest over 100,000 research reports. It is essentially a tailored compendium for finance professionals, designed to assist with answering questions about investment recommendations, general business performance, and internal processes (like completing specific applications). In a memo to Morgan Stanley staff, co-president Andy Saperstein said the AI assistant would “revolutionize client interactions, bring new efficiencies to advisor practices, and ultimately help free up time to do what you do best: serve your clients.”

A replica of AI @ Morgan Stanley Assistant, Moneyball, was launched in 2024 by American wealth management giant JP Morgan Chase. By analyzing 40 years of financial data, Moneyball identifies potential biases, such as the tendency to sell high-performing stocks prematurely and provides insights to improve investment strategies. This AI tool is designed to assist portfolio managers in making more informed investment decisions.

From curating customised customer experiences and optimising business processes to analysing complex investment/financial data and supporting financial advisors, GenAI has proven its usefulness in various functions of wealth management. One of the most important use cases of it in wealth management is client personalisation and profiling. With GenAI, wealth management firms can explore numerous ways to create customised experiences for their clients. By analysing key data inputs, GenAI can efficiently profile both existing and prospective clients, enabling the delivery of tailored services and personalised experiences. Market research and predictive analysis represent another important use case of GenAI. It can assess historical financial data and track market trends in real time, supporting more informed decision-making. By efficiently processing earnings reports, market signals, regulatory updates, and even social media content, AI ensures that no critical information is missed. Other use cases of GenAI include portfolio optimisation, ESG monitoring, fraud detection and security, all of which are critical components of modern wealth management.

In conclusion, GenAI is not merely a conceptual innovation but a vital tool for contemporary wealth management. It is important for asset/wealth management firms in Nigeria to prioritise the adoption of GenAI solutions to optimise their operations. This will enable financial advisers to operate more efficiently, allowing them to focus on critical tasks such as business growth and delivering exceptional customer service, rather than being burdened by monotonous tasks. Additionally, to address the risks associated with deploying GenAI, firms can adopt a multifaceted approach by involving representatives from risk, legal, compliance, IT, and cybersecurity in the initiative to ensure proper oversight and planning. Management teams can also develop a structured framework for selecting and adopting use cases, aligned with the business’ risk appetite and operational readiness.

 

Adetutu Awojobi, Head of Institutional Sales at Coremars Asset Management, has over 10 years of experience in banking, asset management, and financial planning. A Covenant University and University of Lagos alumna, she excels in client management, market research, and investment advisory services.

The Securities and Exchange Commission (SEC) has reaffirmed the capital market’s ability to fund the government’s development objectives by providing the required infrastructure.

Mr Lamido Yuguda, the Director-General of the Commission, revealed this when a team from the Nigerian Economic Summit Group (NESG) visited him, according to a statement released by the SEC management.

Yuguda reaffirmed the importance of the capital market in a country’s development by providing long-term money for infrastructure development.

What SEC is saying

• He said, ”Our collective economic power is bigger than the government and in many countries, you find out that the capital market is actually funding the government.
• He stated that the funds in the savings account can have multiple benefits beyond the interests payment. He said, ”When you save, the finance is used to create economic value that actually enhances your standard of living and this is a win-win.”
• ”You get financial returns and also get utility from the investments and this is actually achievable,” he added.
• Yuguda praised the NESG’s alliance, adding that both organizations will contribute more to the country’s economic progress.
• According to him, the fact that we are engaging with the NESG is a positive step because our policy environment is not favourable to the return of money to investors in many areas.
• Yuguda stated that the commission was dedicated to addressing the issue.
• Earlier, NESG’s Chief Executive Officer, Mr Laoye Jaiyeola, emphasized the importance of passing the Investments and Securities Act in order to ensure that the country’s development needs are prioritized.

Source: https://nairametrics.com/2022/04/25/sec-says-captial-market-can-fund-the-government/

Retail investors can now purchase FG Bonds for as little as N5,000 thanks to the FGN bond’s design by the Debt Management Office, which caters to inexperienced, retail investors.

This was disclosed Mr Abiodun Fagbohun, the Chief Executive Officer of a stockbroking firm, who stated that the current arrangement was a departure from the past, according to the News Agency of Nigeria.

FGN products were historically used by organizations like banks and pension fund administrators. Now, the Federal Government Securities Issuance Awareness Program, which is being run by DMO and CSL Stockbrokers Limited in different parts of the nation, encourages more Nigerians to diversify their investment portfolios by purchasing different Federal Government securities

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