The Emir of Kano, Muhammadu Sanusi II, on Thursday warned prospective investors against using essential funds, including children’s school fees and money meant for primary residences, to buy shares.
Sanusi gave the warning in Kano at the Dangote Refinery IPO investor roadshow, urging residents to invest only disposable income they could afford to set aside for the long term.
“Do not take your children’s school fees and put in shares. Do not sell the house that you live in and put in shares,” the emir said.
He advised prospective investors to start with modest and manageable amounts such as N10,000, N20,000 or N30,000, rather than seeking quick returns through short-term speculation.
“But what you can afford, 10,000, 20,000, 30,000 – what you can afford to set aside for some time, set it aside,” Sanusi said.
The former Central Bank of Nigeria governor said investors who considered the fundamentals of the economy and remained invested over time could benefit from the growth of their investments.
He said, “I speak as the Emir of Kano; I would like my people to be owners of this company.
“I do not want us to be left behind in the capital markets. I do not want us to be left behind in financial inclusion. So this is the time and this is the opportunity.”
Sanusi also cautioned against buying shares with the expectation of doubling one’s money overnight.
“And I’m not talking about someone who will buy 5,000 shares and want to sell tomorrow and believe he will get 10,000. No,” he said.
He urged investors to adopt a long-term approach by investing what they could afford and allowing the money to grow.
“I’m talking about you have some money, put it in, leave it there for some time, and just watch your money grow,” the emir said.
“Forget about it for some time. You’ll be surprised in five years the 10,000 Naira you invest today, what it will be. The 100,000 Naira you invest, what it will be.”
The traditional ruler also explained that the physical location of the Dangote Refinery was irrelevant to shareholders, stressing that ownership and profits belonged to investors.
“It doesn’t matter where the refinery is located. It could be located in Lagos, or Ibadan, or on the moon,” Sanusi said.
“It is the shareholders who own it. It is the shareholders who take the return. It is the shareholders who own the profit.”
Sanusi praised Kano-born businessman and Chairman of Dangote Industries Limited, Aliko Dangote, while urging residents to acquire a stake in the refinery before the public offering closes.
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