Former Central Bank of Nigeria (CBN) Governor and Emir of Kano, Muhammadu Sanusi II, has urged Nigerians interested in the Dangote Refinery’s Initial Public Offering (IPO) to invest cautiously, warning them against putting essential family funds or property into the share offer.
Sanusi gave the advice on Thursday in Kano while speaking at the investor roadshow for the Dangote Refinery IPO, which commenced on September 14 as part of efforts to attract investors across the country.
The Emir urged prospective investors to commit only funds they could afford to set aside for an extended period, suggesting that individuals could start with relatively modest amounts such as N10,000, N20,000 or N30,000.
“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,” Sanusi said.
He added that investors should focus on long-term wealth creation rather than attempting to make quick profits from fluctuations in the share price.
“But what you can afford, N10,000, N20,000, N30,000; what you can afford to set aside for some time, set it aside,” he said.
Sanusi said investors who approached the opportunity with a long-term outlook could potentially see their investments increase over time, based on their assessment of the company’s fundamentals and the broader economy.
‘Don’t Expect Quick Profits’
The former CBN governor specifically cautioned against buying shares with the expectation of doubling one’s money almost immediately.
“I’m not talking about someone who will buy N5,000 shares and want to sell tomorrow and believe he will get N10,000,” he said.
Rather, he advised investors to commit affordable funds and allow the investment to remain for a longer period.
“Forget about it for some time. You’ll be surprised in five years, the N10,000 you invest today, what it will be; the N100,000 you invest, what it will be,” he added.
Sanusi Wants Kano Residents to Own Stake
Sanusi also encouraged Kano residents to participate in the capital market, particularly because Aliko Dangote, the refinery’s founder, hails from Kano.
Speaking as the Emir, he said he wanted residents of the state to become shareholders in the company rather than remain onlookers as the refinery attracts investment.
“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 called on union leaders and representatives of different groups to educate their members about the IPO and the mechanics of investing in the capital market.
‘Location Doesn’t Matter to Shareholders’
The Emir also dismissed concerns that Kano residents should not invest because the refinery is located in Lagos State.
According to him, ownership of a company rests with its shareholders, regardless of where its physical assets are located.
“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,” he said.
“It is the shareholders who own it; it’s the shareholders who take the return; it is the shareholders who own the profit.”
Sanusi described Dangote as “a son of Kano” and urged residents to use the IPO as an opportunity to take an ownership 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,” he said.
Dangote Refinery IPO Opens to Investors
The Dangote Refinery IPO opened on September 14, with investor roadshows being held in different parts of the country to explain the offer and encourage participation.
The refinery, one of Nigeria’s largest industrial projects, has begun producing refined petroleum products and is designed to process crude oil on a large scale, potential