The Emir of Kano, Muhammadu Sanusi II, has cautioned prospective investors against using their children’s school fees or selling their homes to raise money for investments in shares.
Sanusi gave the warning on Thursday while speaking at the Dangote Refinery Initial Public Offering (IPO) investor roadshow in Kano.
He encouraged residents of Kano and other prospective investors to invest only funds they could comfortably set aside for an extended period. He suggested that people could start with amounts such as N10,000, N20,000 or N30,000, depending on what they could afford.
He said, “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.
“But what you can afford,10,000, 20,000, 30,000, what you can afford to set aside for some time, set it aside. And if you look at the fundamentals of the economy, over time you can be assured that this investment will grow, and you will not regret it.”
The Emir made the remarks as part of the ongoing investor engagement for the Dangote Refinery IPO, which commenced on September 14.
Sanusi also encouraged Kano residents to participate actively in the capital market and seek ownership stakes in the refinery established by Kano-born businessman Aliko Dangote.
“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,” he said.
He urged representatives of unions, associations and other groups to educate their members about the opportunity presented by the IPO.
Sanusi further advised investors to approach the investment with a long-term mindset instead of seeking immediate profits from buying and selling shares.
“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, I’m talking about you have some money, put it in, leave it there for some time, and just watch your money grow.
“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,” Sanusi said.
The Emir also said Kano residents should not be discouraged from investing because the refinery is located outside the state, noting that ownership of the company is determined by its shareholders rather than the location of its facilities.
“It doesn’t matter where the refinery is located. It could be located in Lagos, or Ibadan, or on the moon. It is the shareholders who own it.
“It is the shareholders who own it. It’s the shareholders who take the return. It is the shareholders who own the profit,” he said.
Describing Dangote as a son of Kano, Sanusi urged residents to use the IPO as an opportunity to acquire a stake in the company.
“We have heard Lagos claim Aliko. I know very soon even Egypt will claim him, America will claim him. But we all know where he comes from,” Sanusi said.
He added, “I would like to say that this is his grand homecoming. We are happy to donate him.
“We are happy to share him, but please do not take him away from us.”
Sanusi also drew attention to the refinery’s operations, noting that prospective investors could observe the company’s facilities and activities, including its production of refined petroleum products and fertiliser.
