To expand hospitality, logistics, oil, gas businesses

To reposition its company to become a world-class conglomerate, Odu’a Investment Company Limited has said it’s targeting up to N40 billion Profit After Tax (PAT) by the year 2035.

At the company’s 40th yearly general meeting held in Lagos yesterday, the incoming chairman of the group, Bimbo Ashiru, said the new board would consolidate on the improvement made in its existing businesses, as well as explore new business opportunities in other areas to achieve the target.

According to him, the company plans to focus more on growing its oil and gas business and transforming the company into becoming one of the oil industries in Nigeria.

He also pointed out that the company was looking at enhancing its visibility in hospitality by expanding investment in the hotel business.

We are partnering with stakeholders to ensure that we have world-class hotels in Nigeria. This hotel is as old as 50 years old; we want to ensure that in another 50 years, we build other hotels. The Premier Hotel is done; they have done the paving and they have almost completed it. Hopefully, by August, everything will be put in order.”

Reviewing its financials at the meeting, the Group Chairman, Dr. Segun Aina, said the company’s PAT grew significantly by 149.8 per cent from N3.75 billion achieved in 2020 to N9.37 billion, driven by an increased focus on different areas of the business and gains in investment properties.

He said the company increased its dividend payout by 15 per cent to N418.4 million for 2021, up from N364 million declared in the corresponding period in 2020, based on the improved performance, adding that this marked the 8th consecutive year that the company was declaring and paying dividends to shareholders.

Aina also assured shareholders that the board had put in various best practice governance policies in the year under review that would ensure the company’s investments create a sustainable impact in the ensuing years.

Group Managing Director/CEO, Adewale Raji buttressed that the company’s Profit Before Tax (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 also disclosed that the company celebrated 45years since it commenced operations in November 2021 and that as part of the celebrations, the Odu’a Investment Foundation was established to positively influence the next generation of youths with a focus on health, and education and youth empowerment.

Furthermore, he said the agric investment subsidiary, SWAGCO Ltd (South West Agriculture Company), has begun to make a significant effort in investing in agriculture 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. The company’s investment in oil and gas through the acquisition of part of BITA Marginal Field and setting up of BITA Exploration & Production Ltd with our JV partner is gathering momentum.

“The business outlook of the company is 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 new partnerships for growth in its 8 sectors as captured in ‘SRC 2025 Strategic Plan’ in agriculture, real estate, hospitality, financial services, energy, healthcare, ICT/digital and logistics/e-commerce,” he said.