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By Chukwuma Umeorah
VNL Capital Asset Management has advised investors to adopt more strategic asset allocation approaches in response to rising global volatility, warning that geopolitical tensions, inflationary pressures and supply chain disruptions continue to reshape investment outcomes.
Speaking at the firm’s Investors’ Roundtable 1.0 in Lagos on Tuesday, the Chairman of VNL Capital, Adam Nuru, said current global conditions require disciplined capital deployment and a stronger focus on domestic opportunities. “Local insights and the disciplined capital and forward-thinking partnerships can generate not just returns, but lasting impact,” he said, noting that Nigeria’s economic environment is presenting opportunities despite external headwinds.
The firm said global developments, including ongoing conflicts between Iran and USA and long-standing Russia-Ukraine war and disruptions to key trade routes, have heightened inflation risks and increased uncertainty across markets. These conditions, it noted, are forcing businesses and investors to reassess strategies and reposition portfolios.
Chief Economist at the Development Bank of Nigeria, Professor Joseph Nnanna, delivering the keynote address said inflationary pressures remain a central concern, driven by rising energy costs and supply chain constraints. “When inflation shoots up to a point, small businesses in particular, feel the pinch the most,” he said, adding that businesses typically respond by cutting costs and adjusting operations.
He added that global shocks have implications for emerging markets, including capital flight, currency volatility and higher debt servicing costs, while also influencing monetary policy decisions.
“Businesses generally will have to take a strategic pivot. What you envisioned, will have to change. If you remain static, you will regress backwards,” Nnanna said.
On Nigeria’s outlook, he said recent reforms have supported relative stability in the naira and improved planning for businesses, although new global shocks could reverse some gains through renewed inflationary pressures.
The discussions also highlighted sector-specific investment opportunities, with renewable energy, agriculture, financial services, infrastructure and the creative industry identified as areas with growth potential.
Nnanna said agriculture remains critical, contributing significantly to the economy and offering opportunities across the value chain, including processing, storage and livestock development.
“There’s so much opportunities in agro-processing and agro-businesses that we don’t really take advantage of,” he said.
In the financial sector, he pointed to the expanding fintech space and the need for stronger local participation, as well as the role of capital markets in supporting long-term economic growth.
Infrastructure development was also identified as a key constraint, with stakeholders noting that improvements in ports, logistics and power supply could enhance competitiveness and reduce business costs.
Head of the Lagos Zonal Office of the Securities and Exchange Commission (SEC), John Briggs, cautioned investors against unregulated investment schemes, stressing the importance of aligning investments with individual risk profiles.
“Your risk appetite is very key to the kind of investment you want to put in your money,” he said.
He warned that increasing market opportunities are often accompanied by higher risks, including fraudulent schemes, and urged investors to engage only with regulated entities.
“Make sure that you only invest with organizations that are registered. If you do that, the challenge is that we will not be able to protect you,” Briggs added.
Also speaking, Chief Investment Officer at VNL Capital, Dr Ifeanyi Ubah, said the firm is adopting a research-driven investment approach aimed at improving decision-making in volatile conditions.
“One thing that is unique is the research led investment,” he said, explaining that the firm prioritises data and analysis across its portfolio management and compliance processes.
He noted that global market trends, including fluctuations in commodity prices and capital flows, continue to influence asset performance, but also create entry opportunities for long-term investors.
“Regardless of what is happening, there is something for somebody at every time,” Ubah said.
According to him, investors who are able to reposition portfolios, diversify assets and take a long-term view of the market, stood at an advantage.
He emphasised that Nigeria’s economic potential, supported by ongoing reforms and sectoral opportunities, remains attractive, provided investors adopt disciplined and informed strategies.
