Key Takeaways from the Lagos Private Wealth Conference 2024

I had the pleasure of attending the Lagos Private Wealth Conference 2024 yesterday, and I must commend Bimpe Nkontchou and W8 Advisory along with their partners for organizing such a laudable and well-attended event.

The conference provided valuable insights into wealth preservation, strategic philanthropy, and the importance of family governance in sustaining wealth across generations.

??Macroeconomic Context

We are currently navigating challenging economic conditions with 30% inflation and interest rates at an MPR of 26%. The discussion highlighted that foreign portfolio investments are lagging due to exchange rate volatility and high interest rates.

The consensus was clear: trying to free the market all at once is overwhelming. Instead, we need to focus on reducing government spending rather than relying solely on tax policies to solve economic issues.

??Key Themes and Highlights

1. The Role of Philanthropy

Given the significant income and education inequalities, philanthropy must be a cornerstone of any wealth strategy. Addressing these disparities is crucial for a sustainable future.

2. Wealth Preservation Strategies

The first panel explored effective methods to protect and preserve personal wealth in our dynamic economic landscape. The discussion underscored the biggest threats to wealth preservation: lack of succession planning, inadequate financial education among heirs, and insufficient diversification.

3. Succession Planning and Family Governance

Rotimi from FBN Quest emphasized that many heirs are not financially literate or interested in family businesses, leading to potential asset liquidation. He stressed the importance of professional management and thinking beyond day-to-day operations to consider governance structures like boards.

Bimpe highlighted the challenges of communication and governance within families. She advocated for creating environments conducive to family conversations and using independent facilitators to navigate these discussions.

It's vital to develop agendas that address key issues, values, and needs of all family members.

The panel also noted that successful businesses like Schlumberger have thrived by incorporating professional managers rather than relying solely on family members.

4. Importance of Family Offices

The benefits of establishing family offices were discussed extensively. The primary advantage is creating a structure where the patriarch can make informed decisions with the help of advisors and professionals. This approach helps prevent the dissipation and depreciation of assets over time. Building a team of advisors, including lawyers, tax advisors, trust and asset managers, and lifestyle concierges, is crucial.

Women were encouraged to become architects of their wealth by starting conversations early and working with trusted wealth partners to create unique roadmaps.

Organizing transitions isn't just about preparing for death but also for retirement and other life changes.

5. Global Citizenship by Investment Schemes

Chidinma, Senior Advisor at Henley & Partners, discussed global citizenship by investment schemes, highlighting their benefits and the strategic advantage they can provide in wealth preservation and mobility.

6. Private Equity

The conference also delved into private equity, emphasizing the importance of investing in what you understand and recognizing that it's a human capital game. Effective management is key to success in this field.

7. Art Collectibles

Ugoma Ebilah bilah shed light on the growing value of African art, noting that the art market is valued at $123 billion. She explained that the value of art often increases posthumously, and older artists provide better hedging options. Female artists and African modern and contemporary art are on the rise.

Ugoma also highlighted that being a pleasant and engaged collector often leads to better deals and instalment payment options.

In summary, the Lagos Private Wealth Conference 2024 offered a wealth of knowledge and practical advice for navigating the complexities of wealth management in today's economic climate.

Congratulations to Bimpe Nkontchou for a successful event that left attendees with valuable insights and actionable strategies.

Dedicated to your journey of Leadership Excellence,

Your Chief Igniter,

Udo Okonjo

Chief Igniter | Real Estate Maestro | Official Member Forbes Council | Berkeley Certified Executive Coach| Founder, Power Woman Leadership/IWOW Academy

Crafting Prosperity: $500M+ Real Estate Deals | Leadership & Wealth Strategist

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