Chief Operating Officer, Investment Hub Nigeria Limited, Shehu Raji, has outlined safeguards and avoidable pitfalls for investors o avoid losing their investments, a trend that has become a common occurrence in many business ventures.
Raji, who spoke at an investment forum organised by Investment Hub Nigeria Limited in collaboration with Cornerstone Insurance in Lagos at the weekend, said the objective of the forum was to discuss trends and opportunities in the investment landscape with special focus on innovative insurance and investment solutions that support long-term wealth building and financial security.
He said: “We acknowledge that there are challenges in the investment landscape in Nigeria,” including “ a complete lack of information, or education about investment opportunities, infrastructure gaps, regulatory complexities, get-rich quick mentality of Nigerians and in recent times security concerns,” adding that the social media explosion has compounded the situation with a lot of Nigerians getting unverified information on investment opportunities and making ill-informed decisions when it comes to investment decisions.
He said this has led to a lot of financial losses for uninformed Nigerians.
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Raji said Investment Info Hub Nigeria Limited was established to correct this anomaly and serve to serve a platform dedicated to Investment education and financial literacy.
“Our aim is to bridge the gap between potential investors and verified investment markets by providing a vast array of opportunities for investments available in Nigeria, providing comprehensive, accurate and timely investment information and advisory services based on verified data models,” saying that some of these investment opportunities can be found in the stock market, real estate, agriculture, commodities, manufacturing, mutual funds, treasury bills and government bonds.
Head, Strategy & Project Management, Cornerstone Insurance Plc, Tunde Lawuyi, said less than two million, according to a study buy insurance policies annually.
He said the reality is that many Nigerians have limited disposable income, especially in rural areas where at least half of the population resides. When you consider the sources of income themselves, the Nigerian Bureau of Statistics tells us that the majority of Nigerians are into farming and agriculture, which is the biggest employer outside of government. The products that we design as an industry are not primarily targeted at people in those demographics. We’re selling car insurance, and many of them don’t have cars. We’re selling home insurance, and many of them don’t live in communities where fire risks are a major concern.
The regulator, he said has issued guidelines on micro-insurance, which is insurance targeted at the poor. However, the challenge with execution is how to distribute this product and how much to pay someone as a salary, or sales commission if the product is selling for between N500 and N1,000 per annum. How many policies will they need to sell to justify a salary? he queried, saying that’s why technology must now be employed as a means of distribution to these people.
Also, the Brand strategist, Investment Hub Nigeria Ltd, Asamau Adams, said there was no good investment without insurance, saying we come from a society like Nigeria where people fall for scam every day, and we do not have enough information as to which way we want to go when it comes to investment.
Regrettably, many people are also not enlightened, they believe financial prowess is only for the rich, meanwhile anybody can attain any level they want, if they find the right strategies and follow consistently. Another problem we have is access, when you have the education and trust, you might not have the access, a lot of people do not know they can insure their phones, and anything with as little as N1000.
“The solution to maximising insurance is looking out for the right investment companies like Investment Info Hub Nigeria Ltd, and also insurance companies like Cornerstone Insurance Plc. There is no good investment without insurance, and you cannot insure what you haven’t invested in.”
Meanwhile, the Head of Retail, Cornerstone Insurance Plc, Kayode Odetola, asserted that the lack of financial literacy, particularly among young people, was fueling risky investment decisions and exposing them to schemes like Ponzi scams, underscoring the urgent need for stronger education on basic investment and insurance options.
‘The real question is: what are we doing as insurers to help people? How are we educating them on the insurance and investment options available to them?
Raji said the company shall be holding regular summits, collaborating with different experts and companies in the industry, to deliver quality and sound investment advice and opportunities to Nigerians, stating that the focus shall be properly vetting the veracity of any company “we engage for partnerships to deliver services to potential clients.” He said the company’s data analysis will allow for easy information access that will help potential investors arm themselves with proper information and also guide their decision making processes. He said the firm is collaborating with Cornerstone Insurance because of its leadership position in the insurance space in Nigeria, as it has over 30 years of business experience and its innovative investment strategies in the insurance circle.