IAPM rallies experts to boost investment appetite for Nigeria

Concerned by dwindling inflow of foreign direct investment (FDI) in Nigeria, the Association of Investment Advisers and Portfolio Managers (IAPM) has renewed commitments to entice Nigeria to global investors as chosen investment destination.

This was amplified at the recent 2021 Investment Advisers and Portfolio Managers’ Conference themed “The Future of FDI to Africa: Building a Competitive and World Leading Finance Centre and the Role of Investment Advisers”.

Speaking at the forum, IAPM President and Chairman Council, Prince Abimbola Olashore noted that the most salient features of today globalisation drive is in conscious promotion of cross-border investments especially by transnational corporations and firms.

The forum was a convergence of experts across the financial services industry to chart way for provision of world-class investment advisory services that would further endear Nigeria and Africa to foreign investors as havens for off-shore funds.

IAPM President and Council Chairman, Prince Abimbola Olashore

According to Olashore, many developing countries in Africa have made deliberate policies to attract Foreign Direct Investment (FDI) as an important element in their strategies to grow their economies.

“This is because the key motives of FDI is to transfer or amalgamate capital, technology, marketing and managerial skills and also for employment creation, increase in domestic competition and other positive externalities.

“Studies have showed that FDI is positively linked with GDP growth with the ultimate effect of better economic performance,” he said.

Prince Olashore said FDI have benefited  most developing countries in Africa not only in term of supplementing their domestic investments but also have helped in their job creation, infrastructural developments, technology transfer and increased competition in domestic markets which has resulted in enhancing their products creation.

The IAPM boss noted, however, that there has been a systematic decline in FDI to Nigeria since 2011, a year that witnessed the highest pick of $8.84 billion in FDI, adding that the first quarter of 2021 show that FDI to Nigeria stood at $2.13 billion.

He further highlighted political regime, real income per capital or rate of inflation, world interest rate, credit rating and debt service as key factors explaining the variability of FDI into Nigeria.

Meanwhile, Olashore explained that the rationale of the forum was to address declining infrastructure and stimulate economic growth in Nigeria which he described as ripples of financial constraints.

He said: “For less developed countries to achieve their economic greatness, additional foreign capital to fund their economy is required.

“It is for this reason the theme for this year members’ conference is carefully crafted to draw the attention of the policy makers to the need for capital formation to fund the infrastructure deficits and the international investors to the huge potentials available in the emerging Africa markets, especially in Nigeria because of its demographic structure.

“Therefore there is no better time than now in Nigeria journey to economic prosperity and also for African countries to discuss and chart a sustainable programme geared toward attracting FDI.”

Olashore said through all the years of its existence, the association’s objectives have been steadfast along key focus areas which include provision of advisory services for the efficient management of Pension and similar Trust Funds.

The other two, he said, are co-ordination of the investment activities of members and facilitation of the exchange of information to their mutual advantage as well as that of their clients; and education of members and other interested publics in the intricacies of  Investment advisory and portfolio management matters for enhanced proficiency and profitability.

The IAPM president recalled that the past two years has witnessed remarkable developments and tremendous progress in the Association’s operation which include strategic partnerships with critical stakeholders to raise the standard of its capacity building and participation in critical economic projects.

For instance, he noted that IAPM has partnered with the Chartered Institute for Securities and Investment (CISI) by integrating syllabuses.

“By this partnership, IAPM will serve as Accredited Training Partner (ATP) for all the stages of CISI in addition to being the exclusive Accredited Training Partner for the CISI’s Chartered wealth management, the pinnacle wealth management qualification offered by the institute.

“The CISI will also be able to deliver its wide range of financial training products to the Nigeria market through IAPM training platform,” said the IAPM Presdient.

Olashore also revealed that IAPM has leveraged on technological innovations to build a state-of-art training studio which has enabled the institute to take most of it training courses online.

“It also has enabled us to fully conduct our professional Associate programme online. Lectures and examination are now conducted online and this has resulted into increase in registration and participations of people in remote locations who hitherto have not been able to write our examination because of their remote locations.

“Marking of examination scripts are also 50 per cent done electronically which has resulted in reducing the risk of clerical errors and also eliminates risk of scripts lost in transit as the essay part of the scripts are scanned and transmitted electronically to the Secretariat. Student result release time is also reduced.

“We are current working on a YouTube channel project where IAPM members and members of the public can listen to live training broadcast and recorded lectures. The impact of this project when completed is better imagined.

He said, in the last two years, the Nigerian Centre for Management Development (CMD), the body established by the Federal Government to regulate and approve institution for corporate training has approved IAPM as professional Training Institution for both private and public sector.

With this, IAPM has extended it service coverage to finance personnel in public sector of the economy, he said.

He added that IAPM has signed a Memorandum of understanding (MoU) with the Chartered Institute of Stockbrokers (CIS), some other stakeholders and SROs in the capital market on the repeal of the CIS act 2004.

The intention, according to him, is to form a larger Chartered Institute encompassing more capital market operators. More information will be provided to members as event unfolds.

“IAPM syllabus has fully been integrated with the syllabus of the Chartered Institute for Securities & Investment (CISI) Uk; the largest financial professional body in Europe and America; such that an Associate or Fellow member of IAPM is now qualified as Associate (ACSI) or Full member (MCSI) of CISI respectively on IAPM recommendation,” Prince Olashore said.

Other participants at the forum include Mr. Deji Alli, Founder ARM Holding Co. Limited who served as the chairman of the event. The Special guest of Honour was Chief Raymond Ihyembe, Managing Director/founder, Gresham Asset Management Limited, and former, Managing Director of Afribank Plc.

Mr. Zin Bekkali, Managing Director/Co-founder, Silk Invest Incorporation was the Guest Speaker at the forum and the Special guest was Mr. Oscar Onyem, Group Chief Executive Officer of Nigerian Exchange Group.

The panelists were Mrs. Bukola Smith, MD, FSDH Merchant Bank Limited; Mr. Bola Ajomale, MD, NASD Plc.; and Mr. Omolegbe Olatunde, President, Chartered Institure of Stockbrokers.

The Conference which was held both physical and virtual was well attended by local and internation deligates across Europe and Africa.