43rd AGM: Odu’a Investment Records Strong Performance Amid Economic Challenges

•Declares N518m dividend, posts N82.26bn comprehensive income

•SWAgCo signs N10bn Joint Ventures with strategic partners

Sunday Okobi

The Odu’a Investment Company Limited (OICL) has declared a dividend payout of N518 million to its shareholder states for the 2024 financial year, marking a 21 percent increase over the N428 million declared in 2023.

 The Group Chairman, Otunba Bimbo Ashiru, who disclosed these during the Group’s 43rd Annual General Meeting (AGM) held at the Lagos Airport Hotel Limited, Ikeja, yesterday, posited that: “As an organisation with a rich past and which is our common patrimony, we consider our roles as custodians very important and execute our duties as such.

“The current Board of Directors will continue to go the extra mile to re-craft the story of the organisation and work with management to deliver same. The year under review was challenging, but we have delivered what I believe is an exceptional performance under the prevailing economic conditions.”

The meeting saw the consideration and approval of the Audited Financial Statements for the year ended December 31, 2024, alongside the reports of the Board and External Auditors.

Meanwhile, at the AGM, the agribusiness investment vehicle of Odu’a Investment Company Limited (OICL), SWAgCo, has signed N10 billion Joint Ventures with strategic partners, including Starlink Global and Ideal Limited; PETAGULS Cultivars and Seedling Technologies Limited; Foodlocker Limited, and British American Tobacco Nigeria Foundation (BATNF), in pursuit of its goal to agro-industrialise the Southwest region.

The Group chairman stated further that: “Despite a turbulent macroeconomic environment characterized by record inflation, exchange rate volatility, and high energy costs, Odu’a posted an 81 percent revenue growth with operating revenue climbing from N3.95 billion in 2023 to N7.15 billion in 2024.”

He noted that group also recorded a total comprehensive income of N82.26 billion, a staggering 773 percent increase from N9.23 billion in the previous year.

This figure includes N80.58 billion in non-cash fair value gains from revaluation of the Group’s equity investment portfolio.

Ashiru added: “However, Profit Before Tax (excluding fair value gains) declined to N1.78 billion, reflecting the impact of inflationary pressures and strategic reinvestments across subsidiaries.

“During the year under review, OICL underwent key leadership transitions, notably the appointment of Mr. Abdulrahman Yinusa as the Group Managing Director/CEO effectively from June 1, 2024, following the retirement of Mr. Adewale Raji.

“Other appointments included Mr. Olayemi Ajao as Executive Director, Investments and Business Development, and Otunba Lai Oriowo as Non-Executive Director.”

The Board expressed appreciation to former executives, especially Dr. Segun Aina and Mr. Adewale Raji, for their outstanding contributions to the Group’s legacy.

It also implemented key cultural and performance reforms, including a Group-wide Culture Assessment, the rollout of a performance-based incentive scheme, and the establishment of a shared services liaison office at Western House, Lagos.

The Board added: “2024 was defined by sustained macroeconomic volatility. Inflation peaked at 34.8 percent in December, while Nigeria recorded a real GDP growth of 3.4 percent, supported by the services sector. The Central Bank of Nigeria (CBN) tightening cycle pushed interest rates to multi-year highs, pressuring corporate margins.

“Nevertheless, Odu’a Investment maintained disciplined execution of its ‘Sweat, Revive and Create (SRC)’ strategy, which guided its resilience across its five strategic business pillars.”

 In his remark, the Group Managing Director/CEO, Mr. Abdulrahman Yinusa, said: “The year 2024 also marked the closing phase of the Group’s 2021 to 2025 Strategic Plan. Odu’a is poised to unveil a new five-year strategy at the end of 2025, building on its achievements and repositioning for the next growth cycle.

“The Group projects increased income from its real estate portfolio, rising investment returns, and accelerated impact from its technology, agribusiness, and oil ventures.

“Since 2013, the Group has returned N3.63 billion in cumulative dividends to its six shareholder states. The board and management reaffirmed their commitment to building a world-class conglomerate that delivers sustainable economic and social value to the Southwest region.

“We are proud of the legacy we are building at Odu’a Investment, and remain committed to creating sustainable value for our owners – the governments and people of the Southwest – and for future generations.”

In the interim, SWAgCo, the agribusiness investment vehicle of Odu’a Investment Company Limited (OICL), which signed N10 billion Joint Ventures with strategic partners at the event, also entered into Cocoa Plantation Joint Venture with Starlink Global and Ideal Limited and PETAGULS Cultivars and Seedling Technologies Limited for a five-year cumulative investment of N4.6 billion at either Odu’a Agro-Industrial Hub, Oke-Ako, Ekiti State or Odu’a Agro-Industrial Hub in Akunnu, Ondo State (subject to final land testing and validation). It was disclosed that the project will start with 100 hectares pilot in year one and scaling to 1,000 hectares by year five.

According to SWAgCo, during the signing of the joint venture, the cocoa plantation project is expected to provide thousands of direct and indirect jobs, boosting employment and local economic growth.

Furthermore, it will improve livelihoods and stimulate community growth. The utilization of the available irrigation water will boost food security, drive infrastructure development, and contribute to sustainable economic progress in the Southwest region.

Starlink Global and Ideal Limited is a frontline international cocoa trading and market development company, with deep knowledge of the African commodity market acquired over 40 years.

“The company is backed by a team of seasoned professionals drawn from reputable local institutions. However, Petaguls Cultivars and Seed Technologies Limited is a specialised agricultural consultancy and seedlings supply company with advanced knowledge in cocoa seedling production and multiplication,” the group stated.

SWAgCo also signed a joint venture with Foodlocker Limited for a three-year cumulative investment of N5.2 billion in integrated maize, soya beans, sorghum and beef production at Odu’a Agro-Industrial Hub, Imeko, Ogun State.

The joint venture with BATNF is a N65 million maize production programme on 50 hectares at Odu’a Agro-Industrial Hub, Oke-Ako, Ekiti State aimed at providing smallholder farmers with credit, inputs, training on good agricultural practices, cultivation, harvesting, storage services and marketing services.

The group stated that the project, which includes a two-year N32 million revolving grant from BATNF, is expected to enhance the production capacity, skills development, access to inputs, access to market and increase the income of maize farmers in rural communities.

It will also support at least 100 smallholder farmers in cohesive cooperative groups with each farmer empowered to cultivate a model maize farm of at least half a hectare.