Naira-denominated mutual funds recorded a sharp rebound over the past year as investors reduced exposure to dollar-based assets, signalling renewed confidence in local currency investments, a new KPMG report has shown.
The report indicates that Naira mutual funds grew by about 140 percent, rising from N2.29 trillion to N5.48 trillion over the past year. By contrast, dollar-denominated funds posted modest growth of 12 percent, rising from N1.71 trillion to N1.92 trillion by November 2025.
The shift, captured in KPMG’s 2025 Banking Industry Customer Experience Survey, reflects a broader reassessment of risk as macroeconomic conditions stabilise. Economic growth of 3.13 percent in the first quarter and 4.23 percent in the second quarter, combined with improved currency stability, appears to be influencing household saving and investment decisions.
The News Chronicle gathered that households are also rebuilding saving habits, with fewer Nigerians reporting that they do not save at all, while more now set aside a portion of their monthly income despite ongoing cost pressures.
The survey further shows that investors remain cautious, favouring relatively stable, low-entry assets. Commodities such as gold continue to attract interest, while fixed deposits, mutual funds, and equities remain core portfolio holdings for many respondents.
KPMG noted that Nigeria’s financial system is gradually moving from resilience to reform-driven stability, supported by banking sector recapitalisation, foreign exchange reforms, and stronger governance standards.
Rising confidence in formal banking channels, where most savers now keep their funds, highlights the growing impact of these reforms on everyday financial behaviour.
