With over $1 trillion wealth accumulation in digital assets globally, Elias Igbinakenzua, Chief Executive Officer of Globus Bank has called on the Nigerian monetary authorities and wealth managers to pay attention to the digital asset eco-system in order to tap the benefits for economic growth.
He spoke at a one day summit on Wealth Revolution organised by Cordros, a wealth management firm. The summit was designed to give businesses and entrepreneurs the information they can use to grow, preserve and transfer their wealth to the next generation.
Agreeing that digital assets which encompass items including cryptocurrencies and Bitcoins among others, play crucial role in modern economy in diversifying assets in wealth management, Igbinakenzua said “we cannot continue to live in denial for too long as we have seen regulators trying to penalise digital asset accumulation”.
The banker cited a recent report by global real estate consultancy Knight Frank, which reveals that $90 trillion in assets will be transferred to Gen Z population in the next 20 years. He said it is therefore important to understand the thinking of the Gen Z population, who are mostly thinking digital asset.
According to him, “the world is moving and the train has left and if we don’t move with the train, we will be left behind, whether you are a wealth owner or wealth manager, a regulator in that space. I therefore call on the likes of SEC, CBN and whoever that is playing in this space to take time to understand the dynamics of digital assets and try to make the best of it for the good of our economy”, he said.
Igbinakenzua believed that a lot of tax can accrue to the government from the $1 trillion digital asset value across the globe.
The banker who described wealth creation as a process that is systematic, consistent and cumulative and it is the science of managing financial resources for comfortable future. He emphasised financial planning as bedrock of wealth creation. “If you don’t plan your finances, wealth cannot come magically. It has to be deliberate”, he said.
He said one thing that has worked against many people in the journey of wealth creation is the inability to understand the cash flow properly and isolate what is important and what is not and be frugal enough to generate kind of savings that can enhance investment goals. He however said when someone plans, it is becomes a lot easier.
In his speech, Mbanugo Udenze, Principal Partner at the firm said wealth management is not about acquiring wealth but managing and growing it.
On how the Nigerian youth who are about 70 percent of the 210 million can create wealth to better the economy, Gbolahan Aina, managing director of Cordros Asset Management encouraged them not to be afraid to take risks.
He called on the government to create the enabling environment that will make businesses thrive. He challenged the youth to look for opportunities to create wealth.
In his comment, Tilewa Adebayo, CEO of CFG Advisory said much of Nigeria’s wealth is not being managed when financial inclusion is low and about 50% of Nigeria economy is in the informal sector and the sector contributes 50% of Nigeria’s GDP. GDP is about $300 billion from $600 billion 2014.
Charles Robertson, Head of Macro-Strategy at FIM Partners who spoke from UK linked electricity, education and population and how these factors have a strong relationship to the level of development. Nigeria is all about potential.
Adebayo and Charles agreed that it is time Nigeria focuses on its population and electricity to grow the economy.
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