SANUSI CAUTIONS NIGERIANS AGAINST RISKY MOVES TO FUND SHARE PURCHASES

Former Emir of Kano and former Central Bank of Nigeria Governor, Muhammadu Sanusi II, has advised Nigerians interested in investing in shares to avoid taking extreme financial steps such as selling their homes to raise money for investments. Sanusi gave the warning while speaking on investment and financial decisions, stressing the need for individuals to consider their financial circumstances and the risks associated with putting substantial portions of their wealth into the stock market.

Sanusi urged prospective investors to approach the capital market with caution and avoid making investment decisions based on excitement or pressure. He explained that while shares can provide opportunities for wealth creation, investors should understand that the value of stocks can rise or fall depending on market conditions. According to him, people should not put assets that provide basic security, particularly their homes, at unnecessary risk simply because they want to participate in an investment opportunity.

The former CBN governor also emphasised the importance of financial education and proper understanding of investment products. He said investors should know what they are buying, assess the risks involved and determine whether they can withstand potential losses before committing their funds. Sanusi's comments come amid increased public interest in Nigeria’s capital market and opportunities for individuals to invest in shares of major companies.

He further advised Nigerians to distinguish between investing spare funds and committing money needed for essential living expenses. According to him, individuals should consider their income, existing assets, liabilities and financial responsibilities before making major investment decisions. He cautioned against borrowing heavily or disposing of important personal assets simply to raise funds for investments whose returns are not guaranteed.

Sanusi's remarks highlight the need for Nigerians to balance the potential benefits of investing in the stock market with the risks involved. While investment opportunities can provide avenues for financial growth, he stressed that individuals should make decisions based on proper information and their ability to absorb possible losses. His warning comes at a time when discussions around share ownership and participation in Nigeria's capital market are attracting greater public attention.