Globus Bank CEO Urges Nigeria to Focus on Digital Assets to Harness Inherent Benefits
The rapid growth of digital assets, with a global value accumulation exceeding $1 trillion, has grabbed the attention of Elias Igbinakenzua, the Chief Executive Officer of Globus Bank. He has issued a call to Nigerian authorities and wealth managers, urging them to delve into the digital asset ecosystem to leverage its potential for economic growth.
This appeal was made during a one-day summit titled ‘Wealth Revolution,’ hosted by Cordros, a wealth management firm. The event aimed to equip businesses and entrepreneurs with crucial knowledge to augment, preserve, and eventually transfer their wealth to future generations.
Igbinakenzua highlighted the significance of digital assets, which include cryptocurrencies like Bitcoin, in contemporary economies. These assets play a pivotal role in diversifying wealth management strategies. He commented on the reluctance among regulators towards digital asset accumulation, stating, “we cannot continue to live in denial for too long as we have seen regulators trying to penalize digital asset accumulation.”
Reflecting on a report from the global real estate consultancy Knight Frank, Igbinakenzua pointed out the impending transfer of $90 trillion in assets to the Gen Z population over the next two decades. This underscores the necessity to grasp the digital asset inclinations of the Gen Z demographic.
“The world is moving and the train has left. If we don’t move with the train, we will be left behind,” Igbinakenzua remarked. He called upon regulatory bodies such as the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) to familiarize themselves with digital asset dynamics and harness them for the nation’s economic welfare.
Moreover, Igbinakenzua sees the digital asset sector as a potential goldmine for government taxation, given the sector’s global valuation.
Detailing wealth creation, Igbinakenzua described it as a systematic, consistent, and cumulative process anchored on sound financial management for a prosperous future. He strongly advocated for financial planning as the cornerstone of wealth accumulation, emphasizing the necessity of frugality and wise investment to achieve financial goals.
In harmony with Igbinakenzua’s thoughts, Mbanugo Udenze, Principal Partner at the firm, stated that wealth management transcends mere acquisition; it involves prudent management and growth. Meanwhile, Gbolahan Aina, Managing Director of Cordros Asset Management, inspired Nigerian youth, who constitute approximately 70% of the nation’s 210 million population, to embark on wealth creation endeavors without fear of risks.
Aina implored the government to craft conducive environments for businesses to flourish, thereby enabling the youth to identify and seize wealth creation opportunities.
Tilewa Adebayo, CEO of CFG Advisory, and Charles Robertson, Head of Macro-Strategy at FIM Partners, chimed in with their perspectives. They pointed out the unexploited wealth in Nigeria due to low financial inclusion and the significant contribution of the informal sector, which makes up about 50% of the country’s GDP, emphasizing Nigeria’s potential. Both Adebayo and Robertson concurred on the crucial need for Nigeria to leverage its population and electricity to propel economic growth.
This summit, and the discussions it sparked, underscore a growing awareness and urgency among Nigeria’s financial leaders to embrace digital assets and innovative wealth management strategies. As the nation stands on the brink of a generational wealth transfer, the focus on digital assets could very well define the future contours of Nigeria’s economic landscape.
