Investment Product Types
A platform’s product catalogue determines its regulatory obligations. Fixed income products include treasury bills (91, 182, 364 days), commercial papers, and bonds. Mutual funds pool money across money market, fixed income, equity, and balanced categories. Stock trading requires CSCS integration and NGX price feeds. Alternative investments like agriculture funds, REITs, and private credit offer higher yields with longer lock-ins.
Portfolio Management System
The system aggregates holdings into a single portfolio view, tracking quantity, cost basis, current value, and unrealised gains. Performance is calculated using time-weighted and money-weighted returns. The asset allocation engine categorises by class and compares current allocation against targets, supporting rebalancing. Portfolio values update in real time for traded products and daily for fixed income.
SEC Compliance Requirements
The operator must register with the SEC as a fund manager, capital market operator, or investment adviser. Registration takes 3 to 6 months and costs ₦5 million to ₦15 million. SEC rules mandate risk disclosure, complaint procedures, and investor compensation. Platforms submit quarterly portfolio statements, annual audited accounts, and ad-hoc reports.
Investor KYC
Investors provide BVN, government ID, proof of address, and employment details. Identity is verified against NIBSS, and every investor is screened against NFIU and international sanctions lists. A risk questionnaire categorises investors as conservative, moderate, or aggressive.
Transaction Processing for Investments
Subscriptions create an order, validate KYC, check balance, and process payment into a client account. Redemptions calculate value based on NAV or accrued interest, apply exit fees, and initiate payout within 1 to 7 business days. The system tracks each transaction from initiation to settlement.
Reporting and Performance Tracking
Investors receive monthly statements showing opening and closing values, contributions, withdrawals, and returns. Performance metrics include absolute and annualised return, benchmark comparison, and volatility. The regulatory module formats SEC-compliant reports for automated submission.
Frequently Asked Questions
How much does it cost to build an investment platform in Nigeria?
A basic platform with one or two product types costs between ₦8 million and ₦20 million. A full wealth management platform with portfolio management, automated KYC, and SEC compliance reporting ranges from ₦20 million to ₦50 million.
What SEC regulations apply to investment platforms?
Platforms must be registered with the SEC as a fund manager or capital market operator and comply with the Securities and Exchange Commission Act and Investments and Securities Act. Regular SEC reporting and annual audits are mandatory.
What investment products can a Nigerian platform offer?
Common products include fixed income instruments, mutual funds, treasury bills, commercial papers, stocks through CSCS integration, and alternative investments like agriculture or real estate funds.
Your Next Step
Start with one product, validate compliance and operational processes, then expand. This reduces initial cost, simplifies SEC registration, and allows focus on investor experience. Begin with a technical and regulatory discovery session mapping your target products against SEC requirements. Our team has built investment platforms managing billions of naira in assets. Book a free consultation.