Former Kaduna Central senator, Shehu Sani, has stirred a debate on social media after warning Nigerians about the risks of putting money into the stock market and suggesting that those with funds to invest should consider setting up small factories instead.
Sani made the remarks in a post on X on Sunday, where he questioned the returns some investors receive after committing large sums of money to shares.
The former lawmaker argued that investing in the Nigerian stock market requires patience and a high tolerance for risk, while also taking a swipe at the manner in which some stockbrokers market investment opportunities to prospective clients.
“You must have “a strong liver” to Survive the Nigerian stock market issues.The stock brokers have “sweet mouth”. They will make you believe in magic until you pump in your money. when you give them N5M,you can be getting an alert (dividend) of N50k after a long time;if you complain,they will tell you to wait until “the market rises”,and remind you “it’s a LONG TIME investment.Everything looks like the gambling machine.If you have money to invest,please set up a small factory.”
His comments quickly generated contrasting opinions, with some X users sharing personal experiences to support his position, while others argued that he had presented an incomplete picture of how stock-market investments work.
Zachariah Tumba, @TumbaZachariah, backed Sani’s position and recalled his own experience investing in bank shares.
“I 💯 agree with you, I invested 900k in oceanic Bank then, and First bank 600k but never received even 20k from first bank since 2010 to date. That is why I tell everyone who care to listen that do not invest ur money where is not protected by the government.”
Another user, Nwammonwu, @nwammonwu1, described stock investment as a high-risk venture that should mainly involve money an investor can afford to leave untouched.
“Stock == gambling == high risk investment.
So if you have a spare money you are not tied with for an immediate use or future use then you can venture into it.
But you must thread with caution”
Samuel, @ojosam_, however, disagreed with Sani and questioned whether the former senator had sufficient knowledge of the subject to advise Nigerians against investing in stocks.
“Senator, I think you should speak on what you have deep knowledge of and not try to create unnecessary confusion on a subject in which you are a novice. U advise people to set up factory
the question is ,how many factories have you set up as we speak?”
Also reacting, iaindabawa, @iaindabawa, supported Sani’s warning, particularly amid increased public interest in buying shares.
“Ga ya musu gaskiya dai. Especially now that people are rushing to buy Dangote Refinery IPO.
Stock markets investment is for those with idle cash. Which I assure you 99% of Nigerians don’t have that luxury.”
Mashi Emmanuel Yirumso, @e_masho, took a different position, maintaining that the stock market remains capable of creating long-term wealth when investors carefully assess where they put their money.
“The stock market is still a generational wealth creator. You just have to have the keen eye to look very carefully before investing.”
Global Financial Digest, @globalfinanci14, also challenged Sani’s assessment, arguing that returns from equities are not limited to dividends because some investors make profits from short-term movements in share prices.
“Malam, this shows of your lack of understanding of the market dynamism. People who hold their share for long depend on dividends, but their are many shorttime players, who buy and sell when the market gains, to book profit. You must be in the region of who hold on to their shares”
Hafsa, @HafsaMuhammad4, meanwhile, described Sani’s remarks as useful advice and said she had previously reconsidered plans to commit a large amount of money to an investment after consulting an expert.
“A wise counsel! I had intended to pump in a large sum of money in the vogue of the town when I was cautioned by an investment expert! It appears Nigerians are not used to capital markets. The fluctuations, policies of governments and international financial volatility are crucial”
The exchanges left users divided between those who shared Sani’s concerns about the risks and patience required in equity investment and others who maintained that the stock market can deliver returns when investors understand its dynamics and make informed decisions.
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