The recent alarm raised by the Director-General of the Securities and Exchange Commission, SEC, Dr. Emomotimi Agama over Nigerians’ preference for sports betting and gambling to investments in stocks has once again brought to the fore, the citizens’ penchant for do-nothing businesses that are sometimes driven by greed. A good example is Ponzi scheme investments that are normally presented in different forms.
Agama’s observation is coming at a time many Nigerian students are abandoning studies for sports betting. Other Nigerians are quick to join self-styled multi-level marketing organisations that have ‘rebranded’ older schemes such as MMM and others that offered as much as 300% or more on investments in the past.
Despite the numerous cases pending at the country’s police stations and courts, people have remained adamant to warnings. Many companies that are not registered as financial institutions are now positioning themselves ahead of recognised firms for activities such as banking, credit administrations and savings.
According to Agama, while less than 4% of Nigerians are investing in stock, more than 60% prefers gambling engagements. He rightly argues that this attitude is inimical to national development. To begin with, most companies in Nigeria are programmed to go into extinct with the exit of their founders.
On the contrary, established firms in advanced nations hardly get folded up for any reason. The major difference between those abroad and in Nigeria is that the investing public is often invited to own shares in such companies. This ownership style ensures that ideas on sustaining such businesses are not limited to those of the founders. For example, Mark Zuckerberg, the founder and Chief Executive Officer, CEO of Metta, established in 2004, owns only about 13% (342.52m) of shares in the company. Though, this is the highest by an individual, the remaining over 80% is owned by investors around the world.
In the same vein, Google, the world’s most popular search engine that was founded in 1998 by Larry Page and Sergey Brin has 14% of shares jointly owned by both while the rest is owned by investors.
Needless to state here that, the owners of the two companies are among the first five richest individuals in the world. And there are no signs that they would go into extinct. Zukerberg, during interviews some years ago said; “We’re a company where everyone here wakes up in the morning and thinks about how we’re going to help people connect and communicate. We believe the met averse will be the successor to the mobile internet. We’ll be able to feel present, like we’re right there with people, no matter how far apart we actually are. We’ll be able to express ourselves in new, joyful, completely immersive ways and that’s going to unlock a lot of amazing new experiences.”
This business mind set cannot but inspire people to invest in these kinds of money-making ventures.
However, there are many reasons why many Nigerians are scared away from investing in stocks. Aside from few integrity-minded company owners like the just-demised Dr. Christopher Kolade, many company leaders do not manage ownership with posterity in focus. These people are not prepared to get involved in business survival techniques like mergers and acquisitions even when it becomes obvious that they have run out of ideas on how their companies can continue to exist in the face of prevailing odds.
Another reason for this is the collapse of the nation’s value system which has placed emphasis on quick-money making mechanisms that are easily embraced by unsuspecting fellows, especially the youth. Men like Aliko Dangote, Tony Elumelu, Jim Ovia, Mike Adenuga and Cosmas Maduka have never advertised the ownership of shares or investments in their companies on bill boards.
Unfortunately, as risky and unnecessary as some investment platforms are, those that are easily swayed into them appear not to realize that any investment that does not have assurance of protection in case of the unexpected is a potential time bomb waiting to explode.
Meanwhile, concerns as expressed recently by the Director-General of Securities and Exchange Commission, SEC are not enough. Relevant authorities must continue to do the needful in ensuring that Nigerians are educated beyond the mind set of one-man-alone businesses.
Advertisements for quick fortunes with little or no substantiated proofs should be subjected to thorough scrutiny by advertising channels before they are allowed to be passed on to the public.
Beyond all of this, the Nigerian youths must be made to realize that all that glitters is not gold. This, amongst others is the responsibility of the orientation agencies, school teachers at all levels and parents.
