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Helping Ultra-high Net Worth Nigerians on Wealth Transfer

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  • Helping Ultra-high Net Worth Nigerians on Wealth Transfer

Businesses are emerging to help the increasing number of ultra-high net worth Nigerians manage their wealth and save family businesses from collapse, DANIEL ESSIET reports.

Individual wealth in Africa last year totalled $2.2 trillion, according to AfrAsia Bank’s Africa Wealth Report 2017.

The report also said there are about 145,000 high net worth individuals in Africa, with combined wealth holdings of about $800 billion.

According to the report, there are 7,010 multi-millionaires living in Africa, which is a 19 per cent increase in the last 10 years. Some of them are Nigerians. Steady economic growth and a surging stock market are among the factors behind the rapidly swelling ranks of affluent Nigerians.

Interestingly, the nation’s super-rich are increasingly turning to private businesses to manage their money. While banks can give investment advice, family service firms now offer services covering issues confronting modern business family from succession and taxation to philanthropy and alternate investments.

Sensing an opportunity, wealth advisory firms are emerging.

Speaking during the launch of Andersen Tax in Lagos, its Managing Partner, Mr Olaleye Adebiyi, said the firm has created a private wealth unit to help ultra-high net worth individuals stay wealthy. Dedicated to serving high net worth clients, he said the practice is focused on supporting individuals and businesses as key element of their wealth management.

According to him, the rich are particularly concerned about preserving their fortunes, hence, the firm has assembled experts with experience in the different asset class to act as family advisers.

He explained that the experts within the unit have successes in building and sustaining trusted relationships with wealthy individuals.

Adebiyi said while a lot of Nigerian family businesses are performing and growing well, family businesses face some significant challenges. Perhaps first among these is the issue of succession.

He said that some business owners expected to retire have not created a significant transition. As a result, lot of family business created decades ago have had challenges changing leadership.

To this end, Adebiyi said Andersen Tax Nigeria is taking up the responsibility of ensuring striving family businesses can outlive their owners through professional management that enable leadership to pass smoothly from one generation to the next.

He also noted that preparing and training the next generation as well as improving financial literacy among family members are critical success factors to building businesses that will outlast the founder’s generation.

He noted that Nigerians need dividends of tax money to encourage compliance.

He announced that previous Andersen professionals are returning to the firm after having built their independent tax advisory practice. The new team significantly expands its resources of private client service.

Minister of Industry, Trade and Investment, Dr Okechukwu Enyinna Enelamah said the return of firms such as Andersen is hailed as proof of the nation’s potential as a driving force for Africa.

According to him, some of the government’s incentives are aimed at encouraging international firms to set up offices in Nigeria.

Despite its challenges, he said Nigeria has some advantages in terms of rankings for governance and for ease of doing business.

Across the world, he said the need for knowledge-based services is expanding, adding that Nigeria is a big market for services in accounting, legal and advisory services.

While many of the opportunities are ripe for taking, he noted that they are not without challenges.

With the government’s drive to attract international investment in agriculture, energy and infrastructure, he said firms with existing expertise such as areas are well placed to capture the opportunities.

For many of the most successful professional services firms, he said launching a business in Nigeria market has served as a springboard to expansion.

Enelamah urged the firm to commit itself to building capabilities – the skills, knowledge, and networks needed to understand clients and customers build trusted relationships and negotiate to achieve mutual gains.

According to him, Nigeria has considerable economic potential. As the economy recovers after years of sluggish growth, the government, he said, is working towards building the economy of the future for Nigerians.

The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr Babatunde Fowler said tax is still important for Nigeria to establish an enabling environment and provide infrastructure for growth.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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