NGX Money Market Fund Performance in 2025: A Comprehensive Review and 2026 Outlook
The Nigerian Exchange (NGX) money market mutual fund sector demonstrated robust growth in 2025, according to official Securities and Exchange Commission (SEC) valuation reports. While net asset value (NAV) surged, the year also presented a landscape of softening yields, setting a complex stage for investor expectations in 2026.
2025 Performance: Growth Amidst Shifting Yields
Data from SEC reports dated January 3 and December 24, 2025, reveals the sector’s NAV expanded by a remarkable 182%, climbing from N1.68 trillion in 2024 to N4.74 trillion. This substantial increase reflects pronounced investor confidence in low-risk, short-term vehicles. Concurrently, the number of unit holders grew from 353,940 to 597,901, underscoring the funds’ appeal for safety and liquidity. However, the average yield across all funds decreased from 21.24% to 17.19%, a shift attributed to changes in Central Bank of Nigeria monetary policy. This combination of higher NAV and softer yields indicates a strategic pivot by investors towards secure assets, a trend that may continue as other sectors face volatility.
Understanding Money Market Mutual Funds
A money market mutual fund is a collective investment scheme that pools capital to invest in short-term, high-liquidity instruments like Treasury bills and commercial papers. The principal amount invested remains secure, but the interest income fluctuates with market rates. For instance, a decline in Treasury bill stop rates can lead to a softening in fund yields. These funds are a cornerstone for conservative portfolios, offering a rare balance of security and modest returns in a dynamic economic climate.
The 2026 Investor Outlook: Key Variables to Monitor
The outlook for NGX money market funds in 2026 remains contingent on several external variables. Market conditions, broader macroeconomic trends, and evolving government policies will be critical. As the manufacturing sector tops performance metrics in other parts of the economy, and as international developments like the EU removes Nigeria from certain lists, these macroeconomic crosscurrents will influence monetary policy and, consequently, fund yields. Investors should monitor these factors closely, as the sector’s trajectory, much like the anticipation for a major event, hinges on a confluence of domestic and global financial signals.
