By 
Dotun Sulaiman, Chairman of Parthian Partners Limited, the brokerage firm behind the digital investment platform i-Invest, is optimistic about the potential impact of the Central Bank of Nigeria’s (CBN) forthcoming policy documentation regarding foreign exchange market operation rules in Nigeria.
Sulaiman shared his perspective during an interview with journalists on the sidelines of the recently concluded National Economic Summit in Abuja.
At the summit, CBN Governor Yemi Cardoso announced that the bank would soon release comprehensive policy documentation outlining the rules for foreign exchange market operations.
Sulaiman believes these measures have the potential to bring much-needed order and discipline to a market that has been characterized as “a jungle” due to its lack of clear rules and accountability.
He explained, “The role the CBN Governor is taking on is an answer to the free fall. When you have a market that resembles a jungle, where there are no rules and anything goes, you end up with the challenges we are currently facing.”
Sulaiman stressed the importance of clear and enforceable rules for the market. He cited the current lack of transparency in exchange rates as a prime example of the challenges confronting Nigeria’s economy. He noted that Nigeria’s issues stem not only from the absence of rules but also from inadequate enforcement of existing regulations and the need for a more organized regulatory environment.
Regarding investments, he underscored the necessity for a thorough understanding of the parameters and factors influencing the market, both controllable and non-controllable. Discipline and confidence in the system, according to Sulaiman, are essential to inspire investment. He emphasized that nobody would invest in a situation marked by unpredictability, as it is confidence that encourages investment.
Sulaiman also called for increased collaboration between the public and private sectors in Nigeria, stating that the government alone cannot resolve the country’s economic challenges. He emphasized that creating a conducive environment, enforcing rules, and inspiring confidence are vital to stimulating investments.
Sulaiman described investment as taking a risk today for future returns. However, he acknowledged that the absence of certainty and clear boundaries hampers investment in Nigeria, attributing this to the lack of a rule of law and contract breaches.
The issue of Nigeria’s growing debt and its impact on the economy was also discussed. Sulaiman recommended improved productivity as a strategy to address the country’s debt challenges, suggesting that a productive economy would reduce the necessity for borrowing. He noted that mismanagement of borrowed funds and the disproportionate interest burden relative to revenue had made Nigeria’s debt burdensome.
Sulaiman proposed that the solution lies not in reducing borrowing but in generating more internal revenue, including increased tax collection. He highlighted that Nigerians pay some of the lowest taxes relative to GDP globally, making it essential for the government to enhance tax revenue.
The i-Invest platform, introduced five years ago, aims to democratize investing in Nigeria. It simplifies investment for individuals from all walks of life, allowing them to invest in various financial instruments with as little as ₦5,000. The initiative aims to promote a culture of saving and investment among the general public, making investment opportunities accessible to a wider segment of the population.
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