The Nigerian asset management industry (“the Industry”) has defied a tough macroeconomic climate to achieve impressive growth.

Over the past five years (2019-2023), its Assets Under Management (AuM) have risen significantly, achieving a compound annual growth rate (CAGR) of 21.9%, and reaching an estimated N5.9 trillion ($6.6 billion) by year-end 2023.

This also marks a remarkable 40% leap from the previous year, driven by the expansion of dollar-denominated portfolios and higher yields (particularly in the latter half of the year).

This impressive growth path is even more remarkable considering the significant headwinds confronting the Industry – a deteriorating macroeconomic environment, with rising inflation and a volatile currency, shrinking real incomes and dampened overall savings.

This translates to a double whammy for the Industry: less money to invest and lower returns on investments.