Investor confidence crucial to boosting market participation

Investor confidence is crucial to boosting market participation, and Adedotun Sulaiman, an advisory board member at the Nigerian Economic Summit Group and Chairman of Parthian Partners, is urging the Nigerian government to prioritize reforms that will enhance confidence for both local and foreign investors. In an interview with CNBC Africa, Sulaiman emphasized the need to address foreign exchange supply constraints as a primary concern that must be tackled to facilitate market growth. He acknowledged that the government is working on implementing reforms, but highlighted the importance of time and patience in achieving tangible results. Sulaiman pointed out that Nigeria currently faces a supply issue in the foreign exchange market, attributing the high demand for foreign currency to the country's reliance on imports. He proposed creating conducive conditions to attract dollar investments into the economy, thereby increasing liquidity and easing the pressure on the Naira. Through initiatives like the iInvest app, Parthian Partners aims to democratize investing and encourage ordinary individuals to participate in various financial markets. Furthermore, Sulaiman stressed the significance of instilling confidence among investors, both local and foreign, to drive market activity. He highlighted the impact of government policies, security concerns, and overall economic stability on investment decisions. Building confidence takes time, but it is essential for sustained market growth and attracting a diverse range of investors. In response to the trend of holding savings in foreign currency, Sulaiman cautioned against betting against one's own currency, emphasizing the risks involved in such practices. While short-term gains may be appealing, he advised against overlooking the long-term consequences of such speculative actions. Overall, Sulaiman's insights underscore the importance of instilling investor confidence, addressing supply constraints in the foreign exchange market, and promoting local participation to drive sustainable market growth in Nigeria.