Despite the fact that Nigeria has the fastest growing business investment opportunities in Africa and is currently the largest economy on the continent, the investment standards in the country are still below the world-wide standard.
“Our main goal is really to increase the standards by which investments are managed in the Nigerian market and to also increase the knowledge and skill of investment professionals,” Folasade Odunaiya, president of the CFA on the state of Nigeria’s investment community told CNBC Africa.
CFA society is an affiliate of the CFA institute international which is a global, non-profit member organisation of financial analysts, portfolio managers and other investment professionals. The society’s objective is to create a culture in Nigeria where investment professionals can relate with one another and influence one another.
“We have two categories of members, those who have taken the CFA examinations and have been awarded the CFA charter and those who just have four years’ experience in the investment field and are willing to sign into the code of ethics of the CFA institute,” she said.
The World Bank described Nigeria as having the most attractive investment environment in Africa but many investment analysts still classify as a high risk environment as it relies heavily on political instability, lack of institutional memory and dysfunctional bureaucracies.
“Standards in Nigeria are not as high as one would have expected if you measure it by global standards because we still have a lack of trust in the market. The investors are currently weary of certain aspects of investment in the country because some of them have had their hands burnt by professionals before,” she explained.
According to Odunaiya, the CFA is trying to hone in on the ethics and skills side to therefore be able to build confidence of investors and thereby improve the way and manner the markets run.