**Interview with Ngozi Akinyele on the Evolving Art Investment Landscape**
**Interviewer:** Ngozi, you mentioned that a diversified portfolio is crucial for investment success. Can you elaborate on how art fits into this equation?
**Ngozi Akinyele:** Absolutely. A diverse investment portfolio tends to outperform the market, and increasingly savvy investors are on the lookout for new asset classes, particularly emerging talents in the art world. What makes art investment particularly appealing is its low correlation with other major asset classes, which often translates to reduced overall price volatility. For those investing in blue-chip artists—such as Picasso or Van Gogh—there’s a significant potential for escalating value.
**Interviewer:** It seems like art investment is often viewed as a luxury reserved for the wealthy. How do you see this perception changing?
**Ngozi Akinyele:** While it’s true that many blue-chip artworks come with hefty price tags, there’s a transformative trend underway. Investors are now exploring non-Western art and recognizing the cultural significance and artistic quality of talents from regions like China, India, Brazil, and notably Nigeria. This shift is leading to increased interest and rising prices for these artists, helping to bridge the gap between affordability and investment potential.
**Interviewer:** Can you provide some examples of African artists who are making a mark in the international art market?
**Ngozi Akinyele:** Certainly! Take El Anatsui, for example—his stunning sculptures and tapestries are fetching prices between $5,000 and $2.2 million. Similarly, Yinka Shonibare’s diverse works have also sold for substantial amounts at auctions. Early investors in these artists have seen significant returns, which is why many collectors are keen to discover emerging African talents whose work holds cultural weight yet remains accessible.
**Interviewer:** How has the Nigerian art market fared recently, particularly in light of economic challenges?
**Ngozi Akinyele:** Interestingly, despite some economic volatility, the Nigerian art market reached a ten-year high in 2019, with sales peaking at N400 million. Even amid recent currency crises, the art sector has shown resilience, outperforming other markets. For instance, international auction houses like Bonhams have reported a steady increase in African art purchases, rising from $8.9 million in 2022 to $10.3 million in 2023.
**Interviewer:** What role does Coronation Group play in supporting this burgeoning art market?
**Ngozi Akinyele:** At Coronation Group, we’ve made it a priority to democratize access to art and investment. Our founder, Aigboje Aig-Imoukhuede, has a profound passion for art that has influenced our initiatives. We opened the Coronation Art Gallery in 2022 with the goal of showcasing talented Nigerian artists and collectors. In September 2024, we launched an exhibition highlighting exceptional women art collectors, emphasizing their impact on preserving and promoting Nigerian art.
**Interviewer:** That’s fascinating! What are some current trends in making art investment more accessible to a broader audience?
**Ngozi Akinyele:** One notable trend is fractional ownership, allowing individuals to buy shares in high-value artworks. This model is gaining traction and offers a way for more people to engage with art investment. Additionally, innovations like blockchain technology are being used to tokenise art pieces, further facilitating partial ownership. However, we need to approach these developments cautiously to ensure they’re sustainable and not just fleeting trends.
**Interviewer:** With technology continuing to evolve, how do you see the future of art investments in Nigeria?
**Ngozi Akinyele:** I believe fintech innovators will play a crucial role in lowering the barriers to art investment, particularly as Nigeria is among the top African nations for fintech investment. As these innovative platforms emerge, they’ll create new avenues for people to engage with and invest in art, enriching both individual collectors and our cultural heritage as a whole.
**Interviewer:** Thank you for sharing your insights, Ngozi. It’s clear that the art market holds tremendous potential for both investment and cultural preservation.
**Ngozi Akinyele:** Thank you for having me! At Coronation Group, we’re excited to continue supporting this vibrant sector and fostering a greater appreciation for Nigerian art.
