Nigerian Money Market Funds surge to 15-22% yields as investors flee low-yield bank savings

Nigerian Money Market Funds now deliver 15-22% annualized returns – double the 7-10% from a few years ago – as retail and institutional investors flee bank savings accounts yielding just 2-5%. With MMFs comprising over 60% of Nigeria's mutual fund market, the Central Bank's aggressive monetary tightening (MPR at 26.5%) has boosted yields on underlying assets like Treasury bills (18-22%) and top-tier commercial paper (22-25% from MTN, Dangote, Lagos/Rivers State).

This shift represents a huge opportunity cost for idle cash: holding money in traditional banks means missing out on returns that now exceed inflation. MMFs work as a 'crowdfunding' tool, letting investors start with as little as N1,000-N10,000 via fintech platforms – far below the N5 million+ minimums for direct Treasury bill purchases. Meanwhile, the naira's stability around N1,360-N1,400/$ in 2026 reduces currency fears, making naira-denominated MMFs attractive despite recent yield moderation.

With bank savings rates failing to beat inflation, will you shift your idle cash to Money Market Funds through apps like Cowrywise or PiggyVest to capture these double-digit returns, or continue losing value to naira depreciation and opportunity cost?

SOURCE: https://nairametrics.com/2026/06/23/why-money-market-funds-are-still-nigerians-favourite-haven/