i-invest Advocates for Transparent and Binding Regulations in Nigeria’s Forex Market

Dotun Sulaiman (MFR), the Chairman of Parthian Partners Limited, which owns the digital investment platform i-invest, has expressed his positive outlook regarding the potential impact of the Central Bank of Nigeria’s (CBN) forthcoming policy documentation on the regulation of the foreign exchange market in Nigeria. He shared his optimism during an interview with journalists at the National Economic Summit in Abuja.

During a panel session at the summit, CBN Governor Yemi Cardoso announced that the central bank will soon release comprehensive policy documentation outlining the regulations and operation guidelines for the foreign exchange market. This news was welcomed by Sulaiman, who believes these measures could bring much-needed order and discipline to a market that has long suffered from a lack of clear rules and accountability.

Sulaiman emphasized the significance of having clear and enforceable rules for the market, as the current lack of transparency in exchange rates has posed significant challenges to Nigeria’s economy. He pointed out that the problem in Nigeria extends beyond the absence of rules; it also involves the failure to enforce existing rules and the need for the development of a more organized regulatory environment.

Investment decisions, according to Sulaiman, require a clear understanding of the factors influencing the market, both controllable and non-controllable. He stressed that discipline and confidence in the system are essential to inspire investment since individuals are unwilling to invest in situations characterized by unpredictability.

He further highlighted the necessity for stronger collaboration between the public and private sectors in Nigeria. He emphasized that resolving the country’s economic challenges cannot rely solely on the government and that a conducive environment, the enforcement of rules, and inspired confidence are crucial to encourage investment.

Sulaiman explained that investment involves taking risks today for future returns. However, he noted that a lack of certainty and clear boundaries hinder investment in Nigeria due to the absence of a rule of law and contract breaches.

Sulaiman also addressed Nigeria’s growing debt and its impact on the economy. He proposed that improving productivity is a way to address the country’s debt issues, as a more productive economy would reduce the need for borrowing. He pointed out that Nigeria’s debt has become burdensome due to the mismanagement of borrowed funds and the disproportionate interest burden relative to revenue. He believes the solution is not to borrow less but to generate more revenue internally, including through increased tax collection. Sulaiman highlighted that Nigerians pay some of the lowest taxes relative to GDP in the world, making it crucial for the government to boost tax revenue.

i-invest, a platform introduced five years ago, aims to democratize investing in Nigeria. The platform simplifies investing for individuals from diverse backgrounds, enabling them to invest in various financial instruments with as little as ₦5,000. The initiative is designed to foster a culture of saving and investment among the general public, making investment opportunities accessible to a broader spectrum of the population.