ABUJA, Nigeria (VOICE OF NAIJA)- The Association of Corporate Treasurers of Nigeria (ACTN) has identified an asset-based economic framework as a viable alternative to the output-driven approach historically favored by successive governments.
Speaking at the association’s 2025 Economic Outlook event in Lagos on Friday, themed “Navigating Nigeria’s Economic Landscape in 2025: Opportunities and Challenges for Corporate Treasurers,” industry experts emphasized the need for a shift in economic strategy.
Delivering the keynote address, CEO of Economic Associates, Dr. Ayo Teriba, urged the Federal Government to align its policies with an asset-based model, arguing that output-focused strategies often result in short-lived economic booms without sustained long-term growth.
He cautioned against repeating ineffective policies, particularly borrowing for direct infrastructure investments, and instead advocated leveraging national assets to drive economic expansion.
“When we talk about the outlook, we first look back and say that the evolution of the country’s economy has been a nightmare,” he stated. “We cannot do the same thing over and over and expect different results.
“Just as companies thrive by assetising, states can only grow by assetising too. Borrow against assets and issue equity against assets.”
Teriba emphasized the need for the government to focus on investing in four key asset categories: physical, human, intellectual, and digital assets.
He used India as an example, explaining that assets are interconnected, particularly human and intellectual assets. “You cannot have human assets without an educated population, which is the intellectual assets,” he asserted.
Teriba discussed how an asset-based approach affects high-growth sectors like agriculture.
He argued that instead of continuously purchasing new tractors that are often damaged, the government should prioritize reducing post-harvest losses to improve yield.
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He also highlighted other growth sectors, including energy, transportation, and services, urging federal and state governments to attract foreign direct investment (FDI) for key infrastructure, such as railway tracks, to support the transportation needs of agriculture and services.
Further explaining, he said: “Only countries that align with the evolving global reality of growing inward FDI stocks by financialising their assets in the face of sluggish exports will remain liquid enough to sustain exchange rate stability and diversified Gross Domestic Product growth.
“Countries with stagnant inward FDI stocks and slow export flows will require additional funding to stay liquid enough to support diversified GDP growth.”
Teriba identified nations that adopt asset-based strategies as financializers, including the United States from the G7, China and India from BRICS, and several N-11 countries such as Bangladesh, Egypt, Indonesia, Mexico, Pakistan, the Philippines, South Korea, and Vietnam.
In contrast, he referred to countries with stagnant FDI and export flows as non-financializers, including Canada, France, Germany, Italy, Japan, and the UK from the G7, Brazil, Russia, and South Africa from BRICS, and Iran, Nigeria, and Turkey from N-11.
“Each country, its cities, and its companies must urgently take steps to move from the club of increasingly illiquid nations into the league of increasingly liquid,” Teriba urged.
Meanwhile, ACTN President Adeyinka Ogunnubi, in his welcome address, emphasized that the 2025 economic outlook event was a call for treasurers and businesses to embrace innovation.
“It is a clarion call to all of us to embrace innovation, resilience, and strategic foresight as we prepare to face the unique economic realities of the coming year,” Ogunnubi stated. “The global economic environment continues to evolve rapidly, and Nigeria is no exception.
“We are navigating an era defined by inflationary pressures, fluctuating interest rates, dynamic regulatory changes, and geopolitical uncertainties. These factors pose challenges, yes, but they also offer unprecedented opportunities for corporate treasurers to lead with strategic financial stewardship, risk management, and innovation.”
Ogunnubi added that the corporate treasurer’s role goes beyond managing funds to “enabling businesses to thrive amidst uncertainty, optimising liquidity, and creating long-term value.”
A member of the ACTN governing council, Peju Faloye, stressed the importance for treasurers to approach the coming year with strategies focused on driving business growth.
Faloye, who also serves as the Group Treasury Manager at Oando Plc, noted that economic developments directly impact the treasury functions of businesses. “Corporate treasurers must focus on providing services and driving liquidity, ensuring that we provide liquidity for our businesses,” she explained.
She further pointed out that businesses lacking liquidity are unable to achieve growth or deliver on assets.
“As treasurers, we are at the core of ensuring that our businesses are always liquid enough to continue to deliver growth strategies for our companies,” she emphasized.
“The core for treasurers today is to focus less on reviewing balance sheets as we used to historically 10 years ago,” Faloye continued, highlighting the need for more forward-thinking approaches.
She underscored the necessity for treasurers in 2025 to implement strategies that provide immediate, medium, and long-term liquidity solutions for businesses.
“We must actualize this not only for our businesses but also for the country because we are a sum of the parts,” she stated.
“If we are not doing well as treasurers then the output will be on the economy,” Faloye concluded.