The Emir of Kano, Muhammadu Sanusi II, has urged prospective investors in the Dangote Refinery Initial Public Offering to be cautious and avoid putting essential family resources into the investment.
Sanusi gave the advice on Thursday in Kano while speaking at the investor roadshow for the Dangote Refinery IPO, which opened on September 14.
The former Central Bank of Nigeria governor advised residents and other prospective investors to invest only money they could comfortably set aside for the long term, rather than using funds meant for immediate needs.
“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 suggested that investors could start with amounts they could afford, citing N10,000, N20,000 or N30,000 as examples.
“But what you can afford, 10,000, 20,000, 30,000, what you can afford to set aside for some time, set it aside,” he said.
Sanusi encouraged Kano residents to participate in the capital market, saying the refinery offered them an opportunity to become shareholders in a major Nigerian company 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.
“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 cautioned investors against approaching the share offer with expectations of making quick profits.
He said investors should be prepared to leave their money invested for some time instead of buying shares with the intention of selling them almost immediately.
“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,” Sanusi said.
He added that investors could be surprised by the potential value of their investments over several years, but his comments were framed around a long-term approach rather than a promise of guaranteed returns.
Sanusi also addressed concerns that the refinery’s location in Lagos might discourage Kano residents from participating in the offer.
He explained that ownership of a company is determined by its shareholders, regardless of where its physical facilities 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.
“It is the shareholders who take the return. It is the shareholders who own the profit,” he said.
The Emir also appealed to unions, associations and other community groups to educate their members about the IPO and encourage informed participation in the capital market.
He described Dangote as a son of Kano and urged residents to use the opportunity to acquire a stake in the business.
“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.
“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 further highlighted the refinery’s operations and economic activities, pointing to its production of refined petroleum products and fertiliser, as well as its direct and indirect employment opportunities.
He also noted the company’s access to gas supplies, port facilities and markets as factors he said prospective investors could consider when assessing the business.
The Dangote Refinery IPO roadshow is part of the company’s effort to engage prospective investors following the opening of the share offer on September 14.