The acting Managing Director of Parthian Capital Limited, Ms. Ibilola Ashcroft, a Chartered Financial Analyst with over a decade of experience and specialised expertise in investment products, explains the impact of the new tax acts on the formalisation of the informal sector and more in this interview with OLUWAKEMI ABIMBOLA. Excerpts:
What impacts do you envisage the newly enacted Tax Reform Acts would have on the Nigerian business climate, especially the investing public?
The newly enacted Tax Reform Acts are expected to have a largely positive impact on Nigeria’s business environment. By offering tax exemptions for small businesses and streamlining compliance processes, the reforms are likely to encourage the formalisation of the informal sector, improve the ease of doing business, and foster SME growth. For investors, the Acts promote greater transparency, align Nigeria’s tax regime with international standards, and reflect a commitment to fiscal responsibility, all of which could strengthen investor confidence in the medium to long term. That said, higher compliance demands and increased tax obligations for large corporations may elevate short-term operational costs and put pressure on margins, especially in sectors with heavy capital requirements.
How do you foresee the merger of key tax bodies with the Nigeria Revenue Service impacting corporate tax administration and compliance efficiency for publicly listed firms?
The consolidation of major tax agencies into the Nigeria Revenue Service marks a significant move toward centralising and streamlining tax administration. For publicly listed companies, this reform is expected to enhance compliance efficiency by introducing unified processes, eliminating redundancies, and providing a more coherent interface with tax authorities. The NRS’ emphasis on digital platforms should further enable real-time reporting, simplify documentation, and lower audit risks. That said, the transition may present short-term coordination challenges. Companies will need to invest in system upgrades and staff training to effectively adapt to the new regulatory landscape.
What are your projections for the banking sector, especially next year when the capitalisation process is expected to be completed?
Following the recapitalisation drive, the banking sector is expected to emerge stronger, with better capital buffers to support larger lending volumes and absorb economic shocks. Already, two Tier 1 banks (Access and Zenith) have exceeded the N500bn capital benchmark, and more banks are expected to meet the requirement ahead of the deadline. However, to achieve compliance, smaller banks may pursue mergers and acquisitions, leading to a more consolidated industry by 2026. This would result in fewer but more robust institutions, improved asset quality, and greater investor confidence, particularly as the Central Bank phases out its regulatory forbearance measures.
Parthian Capital recently unveiled two investment funds. What does the firm tend to achieve with these funds?
Most investors prioritise two key factors when evaluating investment opportunities: accessibility and security of funds. At Parthian Capital, we understand this deeply, which is why our suite of investment products, the Parthian Money Market Fund and the Parthian Dollar Fixed Income Fund, is designed to meet these needs without compromise.
The Parthian Money Market Fund is ideal for investors seeking capital preservation and consistent returns. It offers a simple, low-risk entry point into the financial markets, investing in high-quality, short-term instruments such as Treasury Bills and commercial papers. The fund provides liquidity, stability, and competitive yields, making it especially attractive for conservative investors or those looking to park idle funds securely.
For those seeking foreign currency exposure, the Parthian Dollar Fixed Income Fund presents a compelling option. It offers portfolio diversification and income in US dollars by investing in a carefully selected mix of dollar-denominated fixed-income securities. This fund is particularly beneficial for investors looking to hedge against naira depreciation or meet future dollar-denominated obligations.
Beyond offering secure and accessible investment products, Parthian Capital is committed to empowering investors with knowledge. Through ongoing investor education, transparent reporting, and personalised support, we ensure that clients are equipped to make informed decisions with confidence. Our goal is not just to manage funds but to build long-term relationships founded on trust, clarity, and financial growth.
How has the market responded to the investment funds thus far?
The response to the Parthian Funds has been notably positive, fuelled by the seamless accessibility offered through our digital platforms, i-invest and client.parthiancapitalng.com. Both platforms feature user-friendly interfaces, a streamlined registration process, and intuitive dashboards that make it easy for investors to monitor and manage their portfolios from anywhere. This ease of access has significantly reduced the traditional barriers to investing, allowing both retail and institutional investors to participate confidently.
Equally important is the growing trust in the Parthian brand, which has played a pivotal role in attracting and retaining investors. As a pioneer in Nigeria’s financial services sector, Parthian has consistently demonstrated leadership in innovation, from launching one of the first digital investment platforms, i-invest, to making complex financial products accessible to everyday Nigerians. Our reputation is built on a track record of transparency, reliability, and forward-thinking solutions, which continues to inspire confidence in our offerings, including the Parthian Money Market and Dollar Fixed Income Funds.
Moreover, our commitment to leveraging technology to enhance the investor experience, whether through real-time reporting, automated statements, or secure digital transactions, has reinforced Parthian’s standing as a trusted and innovative partner in wealth management. As we expand our product offerings and digital capabilities, investor confidence in Parthian Funds is expected to deepen, driven by the same values of accessibility, innovation, and security that define our brand.
Recently, Nigerians lost huge sums of money to a Ponzi scheme in addition to the significant amount lost to the pyramid schemes in the past. How would you explain this persistent craze for ‘quick money’?
Several factors contribute to the persistent allure of Ponzi and pyramid schemes in Nigeria. One is ignorance. This underscores the urgent and ongoing need for financial literacy, even at the most basic level. When people are equipped with the right information, they are more likely to make sound investment decisions and avoid fraudulent schemes.
Another is complacency, or what can be called “informed negligence.” Some individuals, despite having a reasonable understanding of financial concepts, fail to perform even the most basic due diligence before committing funds. A simple check on the Securities and Exchange Commission Nigeria website can be a vital first step in verifying the legitimacy of investment companies, yet it is often overlooked. Not to be left out is the element of greed; there is a segment of the population that knowingly takes on questionable investments, lured by the promise of extraordinary returns. Even when the offers appear too good to be true, some hope to exit with profits before the scheme inevitably collapses.
How can Nigerians’ appetite for “get-rich-quick” schemes be curbed?
Curbing Nigerians’ appetite for these schemes requires enhancing financial literacy and promoting due diligence. Lack of financial knowledge leaves many, especially in less urban areas, vulnerable to fraudulent schemes. Implementing targeted financial education programmes in these communities can empower individuals to make informed decisions and recognise the red flags of dubious investment opportunities. For more informed investors, fostering a culture of due diligence is crucial. Encouraging individuals to thoroughly research and verify investment opportunities can significantly reduce the risk of falling victim to scams.
The newly passed Investment and Securities Act has formally recognised digital assets, e.g., cryptocurrency, where Nigerians have been playing for so long. What does this recognition mean for this segment of the market and the capital market generally?
The formal recognition of digital assets in the new Act introduces a structured regulatory framework that will enhance investor protection, foster innovation, and align Nigeria with global standards. Operators in this segment now must adhere to regulatory measures such as disclosure requirements and compliance standards designed to curb fraudulent schemes and enhance transparency. In addition, the recognition will facilitate the development of new financial products and services, which will encourage innovation and contribute to the evolution of Nigeria’s financial sector. By aligning domestic regulations with international best practices, Nigeria enhances its attractiveness to foreign investors seeking transparent and well-regulated markets.
The International Monetary Fund has cut the global growth rate. What does that signal for the business conditions in Nigeria and, by extension, investors?
The combination of global economic uncertainties and our domestic structural challenges signals a tougher business environment in Nigeria. Investors, both foreign and local, might adopt a more cautious stance, potentially impacting foreign direct and portfolio investments. For businesses, these conditions may lead to reduced consumer purchasing power, affecting demand across various sectors. In this context, it’s imperative for investors to exercise caution and diligence in making investment decisions.
Where do you see Parthian Capital in the next 3–5 years in terms of innovation, market share, and product development?
Parthian has a strong track record of leveraging technology to democratise investment access in Nigeria. Parthian Capital will continue building on this foundation by incorporating advanced technologies such as artificial intelligence to help us understand client needs and improve user experience, operational efficiency, and transparency. With a focus on accessible investments for everyone, our product offerings will address the evolving needs of investors and position us to capture a larger share of the market.
What’s next for fintech at Parthian after pioneering digital investment through apps like i-invest?
At Parthian, innovation is in our DNA. We transformed Nigeria’s investment landscape by pioneering interdealer brokerage and democratising access to Treasury bills through the i-invest app, one of the first platforms to empower everyday Nigerians to invest securely from their mobile phones. Today, i-invest has evolved into a robust digital marketplace offering a diverse range of financial products.
Looking ahead, we’re deepening our fintech footprint by expanding product offerings, enhancing user experience with intelligent tools, and leveraging data to drive more personalised investment journeys. Our priority remains clear: to use technology to make investing smarter, safer, and more accessible for retail investors and institutions alike. We’re not just keeping up with the future of finance; we’re building it.
How do you see the industry evolving, and how is Parthian Capital preparing for those changes?
The Nigerian asset management industry is poised for significant transformation, driven by regulatory reforms, technological advancements, infrastructural developments, and the nation’s ambitious economic objectives. As Nigeria aims to achieve a $1 tn economy by 2030, the sector will play a pivotal role in attracting and mobilising capital, fostering innovation, and enhancing financial inclusion. At Parthian Capital, we recognise the evolving dynamics of the asset management industry and are proactively positioning ourselves to adapt and thrive by embracing innovation and fostering strategic partnerships with regulatory bodies and other stakeholders.
A word of advice for investors: how should they be positioning themselves in this economic climate?
In the current economic climate, marked by global uncertainties and domestic challenges, investors should prioritise portfolio diversification to mitigate risks and enhance returns. Investors can also engage our experienced team at Parthian Capital to navigate the complexities of the current economic landscape more effectively and craft investment strategies that align with their financial goals.
