The Emir of Kano, Muhammadu Sanusi II, has cautioned prospective investors in the Dangote Refinery against using money meant for their children’s school fees or selling their homes to buy shares.
Sanusi gave the advice on Thursday at the Dangote Refinery Initial Public Offering (IPO) investor roadshow held in Kano.
While encouraging Kano residents to participate in the offer, the Emir stressed the need for investors to commit only funds they could afford to leave untouched for a period of time.
He suggested that prospective shareholders could start with modest amounts such as N10,000, N20,000 or N30,000, depending on their financial capacity.
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 warning came as part of the ongoing nationwide investor engagement for the Dangote Refinery IPO, which opened on September 14.
Sanusi, however, urged Kano residents not to miss the opportunity to acquire a stake in the refinery, describing its founder, Aliko Dangote, as a son of Kano.
“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.
The Emir also called on representatives of unions and other groups to enlighten their members about the investment opportunity and encourage greater participation in the capital market.
He advised those interested in the offer to focus on long-term investment rather than seeking immediate profits from the 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.
Addressing the fact that the refinery is located outside Kano, Sanusi said its geographical location should not be a barrier to investment, noting that shareholders, rather than residents of the area where the facility is situated, own the company.
“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.
Sanusi also highlighted Dangote’s Kano roots while urging residents to take advantage of the IPO.
“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.
