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The Central Bank of Nigeria (CBN) unveiled an exciting update on March 28, 2024, for the review of minimum capital requirements for commercial, merchant, and non-interest banks. Thus, I have delineated in this article, some upsides, and downsides of the recapitalization plan.

In the coming days, the banks will be out to raise additional capital from the public to meet up with the minimum capital requirements. Consequently, as a prospective investor, it is essential that you look before you leap.

Shares acquisition can be a very lucrative opportunity because it will confer on you the ownership status in a company. As a result, you will reap the benefit of your investment whenever the company distributes dividend. On the flip side, investing in shares involves taking some level of risk, including financial losses.

Therefore, caution should be exercised. Don’t buy shares of a company because of sentiment or emotion.


Click below to read the details about the upsides and downsides effect of recapitalization.

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Recapitalization: Upside | Downside - Adda Consistent with the recapitalization exercise, all the relevant stakeholders, including the banks, regulatory agencies, professionals, etc.

Investment in shares can be a lucrative opportunity and can be very risky. Economic conditions and external factors such as recession, inflation, war, pandemic, regulatory changes, etc. can erode the entire original investment, or part thereof. Hence, it is essential to carry out due diligence, and critically evaluate the investment proposal before committing your hard-earned limited scarce financial resources into buying shares. This is necessary to avoid the risk of financial losses.

However, by exercising caution, asking pertinent questions, seeking professional advice, conducting thorough research and due diligence, you can be equipped to building a well-diversified investment portfolio. Strategic planning and effective risk management can help navigate market volatility to avoid a catastrophic financial outcome.

Below are some of the key considerations for investing in shares, including:

1. Financial Goals
2. Capital Investment
3. Risk Tolerance
4. Company Fundamentals
5. Dividend Payment History
6. Diversification
7. Market & Economic Conditions
8. Regulatory Environment
9. Valuation
10. Liquidity

Click here/ below to read about each factor in detail.

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Factors To Consider Before Investing in Shares - Adda Factors To Consider Before Investing in Shares Investment in shares can be a worthwhile opportunity but requires critical evaluation and due diligence before committing one’s hard-earned financial resources into any investment proposal. This is necessary to avoid the risk of financial losses. Thou...

In every organization irrespective of the size, there are stakeholders that exercise some influence on the activities of the business. It is therefore imperative for a company to incorporate the divergent interests of the claimants in its governance process or decision making. Otherwise, the withdrawal of contributions or supports from these group of stakeholders can impair the ability of the company to achieve the intended goals.

This post explained the meaning of stakeholders, and why it is essential to engage them.

Please comment, like, or share to keep the conversation going. Also, you can share your experience on stakeholder engagement to educate others.

Stakeholders Engagement - Adda Stakeholders engagement involves the process of communicating and building understanding and rapport between companies and their stakeholders

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