Africa Prudential Reports Gains from Diversification Strategy

Africa Prudential recorded significant success in its diversification into digital technology solutions provider in 2021 while reinventing its traditional registrar business. These were among the key messages delivered by the company’s leadership at its 9th annual general meeting held in Abuja.

Despite significant macroeconomic headwinds, including double digit inflation and a weaker Naira, the company recorded 71 per cent growth in registrar maintenance fees in 2021 while adding 19 new clients in the associated business line. 

Over the same period, Africa Prudential hit significant milestones in its digital technology business, culminating in a 58 percent rise in revenues in the business line.

Overall, gross revenues increased by 0.4 per cent to N3.5 billion despite the 12 per cent decline in interest income as the non-interest income lines strengthened, while profit before tax was up 1.3 per cent to N2 billion. The firm maintained its dividend payout at 50 kobo per share for the year 2021, the same payment as in the year 2020.

Speaking at the Annual General Meeting, the Chairman of the Board of Directors, Mrs Eniola Fadayomi said, “amid a slow economic recovery but still challenging business environment, the 2021 performance reflects the impact of deliberate efforts to diversify the business and to deploy business solutions to strengthen our business and that of our clients for superior value creation. 

Commenting on the 2021 performance, Mr Obong Idiong, CEO of Africa Prudential said, “the 2021 performance provides further evidence of the success of our evolution as a business solutions provider even as we strengthen our traditional Registrar Business for superior value creation to our customers.Revenue from digital technology business has risen from 1 percent of total revenues in 2019 to 18 percent in 2021, amid an expanding clientele across the public and private sector space.”