By Samuel Adegoke
The Odu’a Investment Company Limited has posted a Profit Before Tax (PBT) of N9.37 billion for the 2021 financial year.
It also paid N418.4 million to shareholder states for the financial year, an increase of 15 per cent over N364 million paid for the 2020 financial year.
The PBT represents a 149.8 per cent increase from N3.75b posted in 2020.
The figures were released by the Chairman, Board of Directors Dr Segun Aina and Group Managing Director Mr Adewale Raji, at the 40th Annual General Meeting (AGM) held at Lagos Airport Hotel, Ikeja on Wednesday.
Aina and Raji attributed the rise in profit to increased focus on the different areas of the business and gains in investment properties.
Aina assured shareholders that the Board had put in various best practice governance policies in the year under review that will ensure the company’s investments create sustainable impact in the ensuing years.
He thanked the shareholders for the great privilege and rare honour to serve as the Group Chairman from May 2020 to June 2022 and urged other directors and the Management to remain focused on the delivery of the Company’s 5-year “SRC-2025” (Sweat, Revive and Create 2025) Strategic Thrust.
Commenting on the result, Raji buttressed that PBT for 2021 included revaluation gains of N7.11 billion from the company’s investment properties portfolio which was N2.63 billion in 2020. He explained that the normalized PBT for the year would be N2.26 billion and N1.12Billion for 2022; representing an appreciable 102% growth, should the accounting gains be stripped off.
He also reported that the company celebrated 45years since it commenced operations in November 2021, adding that as part of the celebrations, the Odu’a Investments Foundation was established to positively influence the next generation of youths with focus on Health, Education and Youth Empowerment
He added: “Our Agric Investment Subsidiary, SWAGCO Ltd (South West Agriculture Company), has begun to make significant effort in investing in agriculture opportunities that will drive capacity development for a new generation of commercial farmers and entrepreneurs. We have committed a large proportion of our land bank towards these efforts focusing on cassava, maize, paddy rice and dairy.”
Raji also hinted that the conglomerate’s investment in oil and gas through acquisition of part of BITA Marginal Field and set up of BITA Exploration & Production Ltd with its JV partner was gathering momentum.
“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) that replaced DPR is currently finalizing the model for Licensing and Contracting documents that will govern the operations of the 2020 Marginal Field Bid Winners.This is the critical hurdle to scale to make the coast clear for a Field Development Plan and approval that will lead to achieving ‘’First Oil.” He said.
He revealed Odu’a’s plan to transit to a lean non-operating holding company that will focus on driving the growth and expansion of its subsidiaries and associate companies, “ensuring investment excellence across its portfolio of assets and seeking for new partnerships for growth in its eight sectors as captured in the “SRC 2025 Strategic Plan” (i.e. agriculture, real estate, hospitality, financial services, energy, healthcare, ICT/digital and logistics/e-Commerce).”
His words: “ Our aim is to transition to a lean non-operating holding company. As part of the efforts to achieve this, we will therefore be transitioning the management of OICL properties to Wemabod Limited creating a single operating entity that will manage the entire Odua Group properties and that of third-party properties. They will also engage in wholesome property development and facility management activities.”
In accordance with the established principle of rotation of chairmanship among shareholder states every four years as enshrined in the Shareholders Agreement, the Board and shareholders approved the appointment of Otunba Bimbo Ashiru as the new chairman.
In an interview with journalists, Aina said the tech hub established in Ogun State would be replicated in other member shareholder states.
Ondo State Governor Oluwarotimi Akeredolu (SAN), his Ogun State counterpart Dapo Abiodun and representatives of other shareholder states attended the meeting.