On the Frontline With Boma
A wise man watches his steps. He spends, but he does not spend everything. He invests, but he does not put everything he owns into one basket. He plans for today while keeping something for tomorrow because, as the elders say, nobody knows what the next morning may bring.
It was against this background that the recent admonition by the Emir of Kano, Muhammadu Sanusi II, former Governor of the Central Bank of Nigeria, caught my attention.
Speaking during the Dangote Refinery Initial Public Offering, IPO, investor roadshow in Kano, Sanusi urged Nigerians who want to invest in the refinery not to take their children’s school fees or sell the houses they live in to buy shares.
His words were simple and direct: “Do not take your children’s school fees and put in shares. Do not sell your house that you live in and put in shares, but what you can afford — 10,000, 20,000, 30,000.”
Ha! Sanusi has spoken.
And I think there is wisdom in those few words.
The Emir was not saying Nigerians should run away from Dangote shares. Far from it. In fact, he expressly encouraged people to participate in the capital market and said he wanted his people to become owners rather than spectators. He urged prospective investors to put in money they could afford to set aside for some time and allow the investment to grow.
That distinction is important.
There is a world of difference between investing responsibly and gambling with the family’s survival.
The excitement surrounding the Dangote Refinery IPO is understandable. For many Nigerians, this is not just another share offer. It represents the opportunity to own a tiny piece of one of the most talked-about industrial projects in Africa.
The public offer, which opened on September 14, involves 4.1 billion ordinary shares at ₦525 per share, with a minimum subscription of 10 shares costing ₦5,250. The offer is scheduled to close on October 13, subject to its terms.
Small wonder that Nigerians are excited.
Everybody wants to be a Dangote shareholder.
From the market woman to the civil servant, from the journalist to the teacher, from the businessman to the young graduate, people are asking questions: How many shares can I afford? How do I subscribe? What will happen to my investment in five years?
The enthusiasm has even spilled into the digital space. Reports indicate that the enormous interest in the IPO temporarily overwhelmed some digital investment platforms as Nigerians rushed to participate.
But there is something we must not lose in the excitement.
Investment is not magic.A share certificate is not an automatic money-doubling machine.
And the fact that a company is large, famous or successful does not mean that every investor is guaranteed a profit.
This is where Sanusi’s intervention becomes particularly relevant.
Nigeria has a long history of people looking for quick money. We have seen the rise and fall of wonder banks and fraudulent investment schemes where people were promised extraordinary returns. Some sold property, borrowed money and emptied their savings because they believed the opportunity of a lifetime had arrived.
Then, suddenly, the music stopped.
The operators disappeared.
The investments vanished.
And the victims were left counting their losses.
Some families lost their savings. Some businesses collapsed. Some people reportedly became psychologically and physically distressed because they could not recover what they had put into fraudulent schemes.
That is why the difference between investment and desperation matters.
Dangote Refinery is a major industrial asset with enormous economic significance. It has already changed Nigeria’s refining landscape, with the facility capable of processing up to 700,000 barrels of crude oil per day. The IPO is intended to raise capital for further expansion, with the company planning to increase capacity substantially in the years ahead.
There is therefore a genuine investment story here.
But there is also a genuine risk story.
Shares can rise.
Shares can fall.
A company can perform well and still experience fluctuations in its share price. Investors can make money, but they can also lose part or, depending on circumstances, much of the money committed.
This is why the old investment advice about not putting all your eggs in one basket remains relevant.
Imagine a father who has ₦2 million saved for his children’s education. He hears the Dangote IPO story and decides to invest the entire amount because he believes the shares will multiply quickly.
The market moves differently from what he expected.
School resumes.
The children need their fees.
The investor needs the money.
But the money is tied up in shares.
What does he do?
That is the question Sanusi was asking without actually asking it.
Investment should not destroy the purpose for which money was originally saved.
School fees are school fees.House is house.Emergency savings are emergency savings.Investment capital is investment capital.
When we confuse them, we expose ourselves and our families to unnecessary danger.
And yet, let us not misunderstand the Emir.
He did not tell Nigerians to stay away from the Dangote Refinery IPO. In fact, he said he wanted his people to own part of it and not be left behind in the capital market. He also urged people to think long term rather than buy thousands of shares today with the expectation of selling them tomorrow for a quick profit.
That, to me, is the real message.
Buy what you can afford.
Understand what you are buying.
Know why you are buying it.
And, above all, do not jeopardise your family’s immediate needs in pursuit of tomorrow’s possible wealth.
There is another reason the Dangote story is particularly interesting.
For decades, Nigeria exported crude oil and imported much of its refined petroleum products. The establishment of the Dangote Refinery has created a major domestic refining capacity and strengthened the possibility of Nigeria becoming a significant exporter of refined petroleum products rather than depending so heavily on imports. Sanusi himself pointed to this transformation when he argued that Nigeria should be refining its own crude rather than sending it abroad for refining and buying the products back.
That is a significant economic development.
The refinery has also become particularly important at a time of international energy disruptions, including the consequences of geopolitical tensions involving Iran. Its ability to supply refined products domestically provides Nigeria with an additional layer of resilience when international energy markets are under pressure.
So, yes, there is something to be excited about.But excitement must not become recklessness.
I particularly like Sanusi’s use of ₦10,000, ₦20,000 and ₦30,000 as examples of amounts that people could consider putting aside, depending on their individual circumstances. The point is not that every Nigerian must invest exactly those amounts. The point is that investment can begin with what one can genuinely afford to leave untouched.
That is an important lesson for our society.
We sometimes believe that unless we make a huge investment, we are not investing at all.
Not so.
A small investment made consistently and wisely can become meaningful over time. The danger is not starting small. The danger is putting everything into an investment because we are afraid of being left behind.
And the Dangote IPO has another lesson for Nigerians: read before you leap.
The Securities and Exchange Commission has specifically advised prospective investors to obtain information from official channels, verify platforms and payment channels, avoid unsolicited messages and guarantees of preferential allotment, and carefully read the approved prospectus and understand the terms, conditions and risks before investing.
This warning is particularly important because whenever Nigerians smell opportunity, fraudsters smell opportunity too.
Already, regulators have had to warn people about fake platforms, impersonation and scams surrounding the IPO.
So, please, let nobody call you on WhatsApp and tell you that for ₦500,000 he can secure “special Dangote shares” for you.
Do not transfer money because somebody sent you a convincing-looking link.
Do not surrender your PIN, password or OTP.
Verify.
Verify again.
And verify from the proper authorities or registered capital-market operators.
For me, I am interested in going in there too.
But not with all I have.
A little bit here.A little bit there.
Let something remain for today.Let something remain for tomorrow.Let something grow.
That is the beauty of sensible investment.
The Dangote Refinery has given Nigerians an opportunity to participate in a major industrial story. The IPO has opened the door to a wider ownership of the business, and its low minimum entry point makes participation possible for many people who may previously have considered the capital market beyond their reach.
But ownership should come with responsibility.
Let us not sell the roof over our heads because we want to own a piece of the refinery.
Let us not take the children’s school fees because we are afraid that everybody else will become rich before us.
Let us not borrow heavily simply because social media is buzzing with stories of how much money somebody expects to make.
And let us not mistake confidence in a company for a guarantee of returns.
Sanusi’s caution, therefore, is not anti-investment.
It is pro-wisdom.
It is a reminder that the intelligent investor does not only ask, “How much can I make?”
He also asks, “What can I afford to lose?”
That question can save a family from disaster.
Dangote’s refinery may indeed become an even bigger economic force. The company is seeking to expand its capacity and deepen its role in Nigeria’s energy and industrial economy. But no investment should be treated as a substitute for proper financial planning.
Let us invest.Let us own.Let us participate in the capital market.
But let us do so with our eyes open.
The race is not necessarily to see who buys the largest number of shares. The wiser race is to see who can build wealth without destroying what he already has.
That is the difference between investment and desperation.
That is the difference between courage and recklessness.
And that, perhaps, is the real wisdom in Emir Sanusi’s warning.
On the Frontline Truth is electrifying.
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It always will be.
On The Frontline With Boma is published by The Port Harcourt Telegraph Newspaper authored by the managing editor.
