Treasurers, who are financial managers responsible for overseeing a company’s finances, have suggested that Nigeria should consider a new way of thinking about economic growth. Instead of focusing on how much the economy produces in the short term, they believe the country should look at its assets—things of value that can generate income over time. This idea was discussed at an event in Lagos, Nigeria, where experts gathered to talk about the country’s economic future.
Dr. Ayo Teriba, the CEO of Economic Associates, gave a keynote speech at the event. He urged the Nigerian government to change its policies to focus on building and leveraging national assets rather than simply trying to increase production. He pointed out that many countries that rely solely on boosting output often see quick gains but struggle with sustained growth in the long run. According to Teriba, if the government continues to follow the same unsuccessful strategies, like borrowing money for infrastructure without considering the country’s valuable assets, it won’t achieve better results.
He emphasized that just as successful companies utilize their assets to grow, governments should do the same. This means borrowing against valuable resources and investing in them. Teriba identified four key types of assets that the government should invest in: physical assets (like buildings and roads), human assets (the population’s skills and education), intellectual assets (knowledge and innovation), and digital assets (technology and data).
Using India as an example, Teriba explained how different types of assets are interconnected. For instance, a well-educated population (human assets) is essential for developing new ideas and innovations (intellectual assets). He argued that the government should focus on preventing losses in agriculture (like wasting food after harvest) rather than just buying new farming equipment that may not be used effectively.
He also pointed out that sectors like energy, transportation, and services are important for growth. To improve transportation, especially for agriculture, he suggested that the government should attract foreign investments to build essential infrastructure, like railways.
Teriba explained that countries that adapt to the changing global economy by investing in their assets tend to remain financially stable and grow their economies. In contrast, countries that don’t attract enough foreign investment or struggle with exports may find it hard to maintain a stable economy.
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He categorized countries into two groups: those that successfully manage their assets (like the United States, China, and India) and those that struggle (like Nigeria, Iran, and Turkey). Teriba stressed that Nigeria and other countries need to take urgent action to improve their financial health and move from being less liquid (having less cash flow) to being more liquid (having more cash and resources).
During the event, Adeyinka Ogunnubi, the President of the Association of Corporate Treasurers of Nigeria (ACTN), welcomed attendees and emphasized the need for innovation and strategic planning among financial managers. He highlighted that the global economy is changing rapidly, and Nigeria faces challenges like inflation, fluctuating interest rates, and geopolitical uncertainties. However, these challenges also present opportunities for financial managers to lead their companies through these tough times.
Ogunnubi pointed out that the role of corporate treasurers goes beyond just managing money; they need to help businesses thrive despite uncertainties and create long-term value. Another ACTN council member, Peju Faloye, stressed that treasurers need to develop effective strategies to ensure their businesses have enough liquidity (cash flow) to grow. She noted that businesses that lack liquidity struggle to operate effectively and deliver on growth plans.
Faloye concluded by saying that treasurers need to adapt their approaches to managing finances in 2025, focusing on immediate and long-term solutions for liquidity. She emphasized that the success of treasurers directly impacts the overall economy, and if they do not perform well, it will reflect negatively on the country’s economic health.
