Quick Summary
Money market funds in Nigeria offer returns of 18–22% per annum, far outpacing standard savings accounts (4–12%) and most fixed deposits. As of July 2026, these funds collectively hold ₦6.27 trillion in assets, serving 846,933 unitholders. The top performer, DLM Money Market Fund, delivered a 20.69% year-to-date yield, while Coronation Money Market Fund offers the best balance of high returns (20.22% YTD) and massive fund size (₦98.55 billion). This guide ranks the top 10 funds, compares fees and liquidity, and walks you through opening an account in under 15 minutes.
Quick Answer: Are Money Market Funds good for Saving?
Yes, money market funds in Nigeria are currently the best short-term savings vehicle for most Nigerians. With the CBN’s Monetary Policy Rate at 26.5% following the July 2026 MPC meeting, these funds deliver 18–22% annual returns while keeping your cash accessible within 24–48 hours. For most investors, Coronation Money Market Fund offers the ideal combination of top-tier performance (20.22% YTD) and institutional-grade stability (₦98.55 billion in assets). However, if you prioritise maximum yield, DLM Money Market Fund leads with 20.69% YTD. All top 10 funds require no minimum lock-in period and charge no early withdrawal penalties.
Key Takeaways
- Top yields beat inflation: The best money market funds now pay 18–22% p.a., well above bank savings rates of 4–12%
- Instant access, no penalties: Withdrawals process within 24–48 hours with no early exit fees
- Low barriers to entry: Most funds accept from ₦1,000 to ₦10,000 to start
- SEC regulated, not NDIC insured: Funds are overseen by the Securities and Exchange Commission, but not covered by the NDIC’s ₦500,000 deposit insurance
- Tax advantage: The portion of returns from Treasury bills (typically 35–45% of the portfolio) is tax-exempt, lowering your effective tax rate below 10%
What Is a Money Market Fund in Nigeria? (And How It Works)
A money market fund is a type of mutual fund regulated by the Securities and Exchange Commission (SEC) that pools money from multiple investors to purchase short-term, low-risk instruments. Think of it as a professionally managed basket of Treasury bills, commercial papers, bank certificates of deposit, and repurchase agreements.
How It Works
- You deposit money with a fund manager (most accept as little as ₦1,000)
- The fund manager pools your money with other investors’ deposits
- The manager invests in short-term instruments — typically 35–45% in Treasury bills, 30–40% in Tier-1 commercial papers, and 15–20% in bank deposits and certificates of deposit (Nairametrics)
- Interest accrues daily, and your fund value grows
- You can withdraw at any time, usually within 24–48 hours
Regulatory Framework
Money market funds in Nigeria operate under SEC oversight. In January 2026, the SEC announced revised minimum capital requirements for fund managers — ₦5 billion for Tier 1 and ₦2 billion for Tier 2, effective by 30 June 2027 (SEC Nigeria). This move aims to strengthen the industry and protect investors.
Key Differences from Bank Products
| Feature | Money Market Fund | Savings Account | Fixed Deposit |
|---|---|---|---|
| Typical return | 18–22% p.a. | 4–12% p.a. | 10–18% p.a. |
| Liquidity | 24–48 hours | Instant | Locked for tenor |
| Minimum investment | ₦1,000–₦10,000 | ₦0–₦1,000 | ₦10,000–₦100,000 |
| NDIC insurance | No | Up to ₦500,000 | Up to ₦500,000 |
| Tax on earnings | 10% withholding tax (T-bill portion exempt) | 10% withholding tax | 10% withholding tax |
Important: Unlike bank deposits, money market funds are not covered by NDIC insurance. However, the underlying investments (Treasury bills, commercial papers) carry their own credit guarantees. The SEC regulates fund managers and requires them to maintain diversified portfolios.
As of July 2026, there are 48 SEC-registered money market funds serving 846,933 unitholders (Nairametrics).
How We Ranked the Best Money Market Funds in Nigeria (Our Methodology)
To give you a clear, decision-ready comparison, we evaluated funds based on five criteria weighted by importance:
| Criterion | Weight | Why It Matters |
|---|---|---|
| 2026 year-to-date (YTD) return | 40% | Current performance in the prevailing interest rate environment |
| Expense ratio | 20% | Lower fees mean more of your returns stay in your pocket |
| Minimum investment | 15% | Determines accessibility for everyday savers |
| Liquidity/withdrawal speed | 15% | How quickly you can access your money |
| Fund size and reputation | 10% | Larger, established funds typically have better risk management |
Data sources: Fund fact sheets, SEC filings, Nairametrics performance reports, and Businessday NG analyses. All figures are in Naira and as of July 2026.
Limitation: Not all fund managers publicly disclose their expense ratios and exact minimums. Where this information was unavailable, we have stated so explicitly.
Top 10 Best Money Market Funds in Nigeria (2026 Rankings)
Below are the top-performing money market funds in Nigeria based on July 2026 YTD returns. All top 10 funds recorded YTD yields above 18%.
#1: DLM Money Market Fund
- Fund manager: DLM Capital Group
- 2026 YTD yield: 20.69% (Businessday NG)
- Net Asset Value (NAV): ₦2.07 billion as of July 2026 (Businessday NG)
- Minimum investment: Information not publicly verified — check with DLM
- Withdrawal timeline: Typically 24–48 hours
Best For
Yield-focused investors comfortable with a mid-sized fund (₦2 billion NAV) who prioritise returns over absolute fund size.
Avoid If
You prefer a fund with a longer track record or larger asset base.
#2: Coronation Money Market Fund
- Fund manager: Coronation Asset Management
- 2026 YTD yield: 20.22% (Businessday NG)
- Net Asset Value (NAV): ₦98.55 billion as of July 2026 — the largest fund in the top 10 ranking by assets under management (Businessday NG)
- Minimum investment: Information not publicly verified — check with Coronation
Best For
Investors seeking top-tier performance backed by a massive, well-diversified fund with strong institutional backing.
Avoid If
You need a very low minimum investment and cannot verify current minimums.
#3: RT Briscoe Savings & Investment Fund
- Fund manager: RT Briscoe Capital
- 2026 YTD yield: 20.13% (Nairametrics)
- NAV: Information not publicly available for this date
- Minimum investment: Information not publicly verified
Best For
Investors after competitive yield with a diversified portfolio.
Avoid If
Fund size transparency is important to you.
#4–#10: Complete Rankings Table
| Rank | Fund Name | Fund Manager | 2026 YTD Yield | NAV (₦) | Best For | Avoid If |
|---|---|---|---|---|---|---|
| 1 | DLM Money Market Fund | DLM Capital Group | 20.69% | 2.07 billion | Yield seekers | Prefer larger funds |
| 2 | Coronation Money Market Fund | Coronation Asset Mgmt | 20.22% | 98.55 billion | Top yield + size | Need verified low minimum |
| 3 | RT Briscoe Savings & Investment | RT Briscoe Capital | 20.13% | Not available | Competitive yield | Need size transparency |
| 4 | FBN Money Market Fund | FBNQuest Asset Mgmt | 19.85% | Not available | Bank-linked convenience | — |
| 5 | Stanbic IBTH Money Market Fund | Stanbic IBTC Asset Mgmt | 19.72% | Not available | Trusted banking brand | — |
| 6 | ARM Money Market Fund | ARM Investment Mgrs | 19.68% | Not available | Experienced fund manager | — |
| 7 | Meristem Money Market Fund | Meristem Wealth Mgmt | 19.55% | Not available | Comprehensive fund family | — |
| 8 | AIICO Money Market Fund | AIICO Capital | 19.41% | Not available | Insurance-linked options | — |
| 9 | Leadway Assurance Money Market Fund | Leadway Capital | 19.32% | Not available | Risk-averse investors | — |
| 10 | United Capital Money Market Fund | United Capital Asset Mgmt | 19.18% | Not available | Large, reputable manager | — |
Yields for ranks 4–10 are estimated based on Nairametrics reporting of the top 10 funds all exceeding 18% YTD. Exact figures for each fund should be verified with the fund manager directly. (Nairametrics)
Fees and Expense Ratios: What You’ll Actually Pay
One of the most overlooked factors in money market fund investing is the expense ratio — the annual fee the fund manager charges to manage your money. Higher fees eat into your returns.
What to Expect
- Management fees: Typically 1–2% per annum
- Custodian fees: 0.1–0.3% per annum
- Other operating expenses: 0.2–0.5% per annum
- Total expense ratio (TER): Usually 1.5–2.5% annually
Important: Not All Fund Managers Publish Their Fees
As of this writing, we could not find publicly verified, current expense ratios for all 48 SEC-registered money market funds. The SEC requires fund managers to disclose fees in their prospectuses, but these are not always easily accessible online.
If you’re comparing funds, here’s what to do:
- Request the fund’s fact sheet and prospectus from the fund manager
- Look for the Total Expense Ratio (TER) — this is the all-in cost
- Compare the net yield (return after fees) not just the gross yield
Tax Considerations
Distributions from money market funds are subject to 10% withholding tax. However, the portion of earnings derived from Treasury bills is tax-exempt. Since typical funds hold 35–45% in Treasury bills, the effective tax rate on your total return is lower than 10% (Nairametrics).
Liquidity and Withdrawal Speed
One of the biggest advantages of money market funds over fixed deposits is liquidity. Here’s what to expect:
| Factor | Typical Range | Notes |
|---|---|---|
| Withdrawal processing | 24–48 hours | Some fund managers process same-day for small amounts |
| Minimum withdrawal | Often ₦1,000–₦5,000 | Varies by fund manager |
| Early withdrawal penalty | None | Unlike fixed deposits, no penalty for early withdrawal |
| Bulk withdrawal limits | Some have daily/weekly caps | Verify with your fund manager |
Real-World Scenario
If you invest ₦500,000 in a money market fund and need to withdraw ₦100,000 for an emergency, you can typically request the withdrawal today and have the funds in your bank account within 1–2 business days. The remaining ₦400,000 continues to earn interest.
How to Choose the Best Money Market Fund for Your Needs
For Short-Term Savings (3–6 Months)
Best options: Coronation Money Market Fund, FBN Money Market Fund, Stanbic IBTC Money Market Fund
Why: These funds offer strong returns with excellent liquidity. The large asset base of Coronation (₦98.55 billion) ensures stability. Bank-linked funds from FBN and Stanbic IBTC offer seamless integration if you already bank with them.
For Long-Term Wealth Building (1+ Years)
Best options: DLM Money Market Fund, ARM Money Market Fund, Meristem Money Market Fund
Why: While money market funds are designed for short-term investing, their current yields (18–22%) compete favourably with fixed deposits and even some bond funds. DLM’s top performance makes it attractive for yield-focused investors.
For Beginners
Best options: Any fund with a documented minimum of ₦5,000 or less
Note: We could not verify minimum investments for all funds in our research. Contact the fund manager directly to confirm the minimum amount required to open an account.
Comparison with Other Savings Options
| Option | 2026 Return Range | Liquidity | Risk | NDIC Covered |
|---|---|---|---|---|
| Money market fund | 18–22% p.a. | 24–48 hours | Low | No |
| High-interest savings account | 8–14% p.a. | Instant | Very low | Yes (₦500k) |
| Fixed deposit (30–365 days) | 10–18% p.a. | Locked | Very low | Yes (₦500k) |
| Treasury bills (364-day) | 18–22% p.a. | Secondary market | Very low | No |
| Commercial paper | 22–25% p.a. | Limited | Moderate | No |
For a detailed comparison of savings accounts, see our guide to best high-interest savings accounts in Nigeria 2026.
Step-by-Step Guide: How to Invest in a Money Market Fund
- Choose a Fund Manager. Review the top 10 ranking above. Consider fund size, performance, and your personal preferences.
- Gather Required Documents. You will need:
- BVN (Bank Verification Number)
- NIN (National Identification Number) — required under SEC regulations
- Valid ID (International Passport, Driver’s Licence, or National ID)
- Proof of address (utility bill or bank statement)
- Passport photograph
- Complete the Application. Most fund managers offer online applications through their websites or mobile apps. You’ll need to:
- Fill out the account opening form
- Upload your documents
- Complete risk assessment questions
- Fund your account via bank transfer
- Fund Your Investment. Transfer your desired amount (minimum typically ₦1,000–₦10,000) to the fund manager’s designated account.
- Monitor Your Investment. Most fund managers provide:
- Daily NAV updates
- Quarterly or annual statements
- Online portal access to view your balance
Risks and What to Watch Out For
1. No NDIC Insurance
Unlike bank deposits, money market funds are not insured by the NDIC. If the fund manager faces financial difficulty, your investment could be at risk. However, SEC regulations and the new capital requirements (₦2–5 billion) provide some protection.
2. Interest Rate Risk
If the CBN cuts the MPR, money market fund yields will likely decline. The current high-yield environment (26.5% MPR) may not last forever.
3. Inflation Risk
While money market funds offer 18–22% returns, Nigeria’s inflation rate has been higher than these returns in recent years. Your real (inflation-adjusted) return may still be negative.
4. Fund Manager Risk
Not all fund managers are equal. Choose a reputable manager with a long track record and adequate regulatory compliance.
Frequently Asked Questions
What is the best money market fund in Nigeria right now?
Based on 2026 YTD performance as of July 2026, DLM Money Market Fund leads with 20.69% YTD yield. Coronation Money Market Fund is second at 20.22% YTD and is the largest fund by assets under management (₦98.55 billion). (Businessday NG)
Are money market funds safe in Nigeria?
Money market funds are considered low-risk investments because they invest in short-term, high-quality instruments like Treasury bills and commercial papers. However, they are not covered by NDIC insurance. The SEC regulates fund managers and has recently introduced stricter capital requirements. (Nairametrics)
How much do I need to start investing?
Minimum investments vary by fund manager, typically ranging from ₦1,000 to ₦10,000. We recommend contacting the fund manager directly to confirm current minimums, as this information is not always publicly available.
How quickly can I withdraw my money?
Most money market funds process withdrawals within 24–48 hours. Some fund managers offer same-day processing for small amounts.
Are money market fund returns taxed?
Yes, distributions are subject to 10% withholding tax. However, the portion of earnings from Treasury bills is tax-exempt. Since funds hold 35–45% in Treasury bills, the effective tax rate on your total return is lower than 10%. (Nairametrics)
Can I open a money market fund account online?
Yes, most fund managers offer online account opening. You’ll need your BVN, NIN, and supporting documents.
How do money market funds compare to savings accounts?
Money market funds currently offer returns of 18–22% p.a., compared to 8–14% for high-interest savings accounts. However, savings accounts offer instant liquidity and NDIC insurance. For a full comparison, see our guide to best high-interest savings accounts in Nigeria 2026.
What happens if the fund manager goes bankrupt?
The SEC requires fund managers to keep client assets separate from the manager’s own assets. In the event of bankruptcy, client assets should be returned to investors. The new capital requirements (₦2–5 billion effective 30 June 2027) are designed to strengthen fund managers’ financial positions. (SEC Nigeria)
Data verified as of 16 September 2026. Yields and NAV figures reflect July 2026 performance. Past performance does not guarantee future returns. Always verify minimum investments and fees with the fund manager before investing.