The Emir of Kano, Muhammadu Sanusi II, has warned prospective investors against using their children’s school fees or selling their homes to buy shares.
Sanusi gave the warning on Thursday at the Dangote Refinery Initial Public Offering investor roadshow in Kano.
He urged residents and other prospective investors to put only money they could afford to set aside for some time into shares.
He cited amounts such as N10,000, N20,000 and N30,000 as examples of what investors could consider, depending on their financial capacity.
“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, “But what you can afford, 10,000, 20,000, 30,000, what you can afford to set aside for some time, set it aside.”
The Emir said investors should take a long-term approach rather than buy shares expecting quick returns.
“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,” he said.
The Dangote Refinery IPO opened on September 14 as part of the company’s plan to raise capital from investors.
Sanusi urged Kano residents to participate in the capital market and seek ownership stakes in the refinery founded by Kano-born businessman Aliko Dangote.
“I speak as the Emir of Kano, I would like my people to be owners of this company,” he said.
“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 also urged representatives of unions and other groups to educate their members about the IPO and encourage informed participation.
Sanusi said prospective investors should not approach the share offer with the expectation of making quick profits.
“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,” he 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 Emir also said the refinery’s location should not discourage Kano residents from investing.
“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 is 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 take advantage of the IPO 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,” he said.
“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 highlighted the refinery’s operations, saying prospective shareholders could see its facilities and activities, including the production of refined petroleum products and fertiliser.
He said the refinery was creating direct and indirect jobs and had secured access to gas, port facilities and markets.