By Enam Obiosio
In Nigeria’s evolving economic landscape, capital is not always the problem – trust is. From startups to listed giants, too many companies struggle not because investors lack funds, but because businesses fail to communicate their value consistently and credibly.
This is where Investor Relations (IR) comes in – not as public relations or damage control, but as a strategic growth tool every forward-thinking board, CEO, and policymaker should prioritize.
What Is Investor Relations, Really?
Investor Relations is the structured communication between a company and its investors, analysts, and regulators. It involves financial disclosures, market updates, stakeholder engagement, and reputation management – all geared toward building long-term trust.
Unlike public relations, which focuses on image, IR focuses on financial truth, transparency, and accountability. And unlike marketing, it is not about persuading, it is about clarifying.
Why IR Matters to Nigeria’s Growth Equation
- For Investors: IR helps assess risk and value. Clear, honest updates build confidence.
- For MSMEs: A simple, investor-ready story can attract angel investors or grants.
- For Boards: It enhances governance, valuation, and credibility in capital markets.
- For Regulators (SEC, NGX): Strong IR ensures fair disclosure and protects investors.
- For SMEDAN: IR readiness can become a critical part of SME investment literacy.
Where We Often Go Wrong
Too many Nigerian companies:
- See IR as a compliance checkbox after listing.
- Ignore retail investors who now move markets with social sentiment.
- Issue complex or infrequent financial communication.
- Operate with a “let us not say too much” culture, which breeds mistrust.
What Good IR Looks Like
- Assign a dedicated IR function or trained spokesperson.
- Speak in plain language, not just financial terms.
- Share regular updates, not just when there is a crisis or AGM.
- Use financial storytelling to explain growth, risks, and strategy.
- Blend media, digital, and direct investor channels for engagement.
A Call to Action
Nigeria’s economy is at a defining point. For businesses seeking investors, and regulators seeking a fair market, investor relations must move to the front burner.
- SEC and NGX should embed IR literacy into market development.
- Boards must put IR on the agenda alongside audit and risk.
- SMEDAN should train MSMEs on investor readiness and communication.
- Companies, whether small or listed, must realize: the capital market does not reward silence, it rewards clarity.
Investor relations is not a cost. It is capital preparation. It is trust-building. It is growth strategy. And in today’s Nigeria, we need all three.
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