The Managing Director, O’dua Investment Company Limited, Mr Adewale Raji, was Olayinka Agboola’s special guest on Tuesday’s Splash 105.5FM, Radio Show, Parrot Xtra/Ayekooto. During the interaction, he revealed the success story of O’dua Investment Company Limited under the supervision of board members and management and the organisation’s efforts in creating new frontiers in the business sector, among many salient issues… Excerpts.
Can you describe how easy it is to run O’dua Investment Company?
I will say fundamentally that it is based on three things, and the most fundamental is our Creator, who allows one to be in this position, and with His backing and signing, He gives you what you will use to be able to cope with it. In addition, other complementary things are needed to run a business organization it including a very competent board and management, shareholders, and the management. Having a shared vision will simplify your journey, though it remains challenging and demanding; that is why it is called business.
You are doing amazingly well, but who is Mr Adewale Raji?
Adewale Raji is a very simple, modest citizen of Nigeria. I had the privilege of attending public institutions in Nigeria up to the University level, where I bagged my first degree in History, and subsequently higher education at the Master’s of Business Administration (MBA) in Marketing. During my life exposure, particularly in the private sector, I was fortunate to access business education from outside the shores of Nigeria at Cranfield University and at Manchester Business School. I worked for multinational companies in Nigeria before being recruited to run O’dua Investment Company Limited.
We have been following your records of accomplishment as the GMD of Oodua Investment. Is there any special secret…?
The foundation for O’dua Investment Company is what is formerly known as Western Nigerian Development Corporation (WNDC), which was the mainstream of economic development for the Old Western Region. The Western Nigerian Development Corporation created the first industrial estate in Nigeria, Ikeja Industrial Estate. Courtesy of our ownership, there is a huge expectation from both shareholders and stakeholders about Oodua Investment Limited. People see it within the context of what WNDC did in those days, making the expectation high.
There are many tasks to do, and three important legs are cohabiting, collaborating, and blending to ensure that the company’s direction and focus are translated into reality.
We have the shareholders, who include the Governors of the six southwestern states of Nigeria (Lagos, Oyo, Ogun, Ondo, Ekiti, and Osun), a board, management, and staff. They expect the company to be the engine room of the economic development of the southwestern states, and that is the task that we have been assigned to do—and doing this task requires enormous work, collaboration, and reaching out to stakeholders within and outside Nigeria.
Does this mean you are a serious and focused businessman, with no time to gallivant around…?
There is so much to be done, and in attempting to meet these expectations, you must have the manpower, which includes the people and talents, people who can compete with any other capable hands elsewhere and in every other sector. This means that we continually invest in people in terms of talent incubation, attracting and retaining talent, and also encouraging them.
Odu’a Investment’s last AGM marked the 8th consecutive year the company declared and paid shareholders dividends. What is the magic behind this? It was not so before you took over the mantle of leadership…
I was hired from the private sector, which is the only reason I was considered for the job. They expected me to do precisely as it is being done in the private sector where the essence of a business is delivering value and returns to its shareholders and stakeholders. I was appointed to ensure stakeholders and shareholders are happy with our performance, and one way of demonstrating that you are running a thriving business and living up to expectations is to continuously be on a path of sustainable profitability, where growth must be sustained too.
In doing this, shareholders and stakeholders expect to share in your success. Payment of dividends is a standard routine, and it is the norm in the private sector. Failure to do so invites trouble, and that is how it should be in Oodua Investment Company, too.
In addition, when you meet shareholders’ expectations, you will automatically get their support for whatever program or support you require because you earned their trust, and they will continually give you their support. We started with the payment of 167 million naira in dividends, and in June, we paid 180 million naira, respectively.
Do you wish to speak about the much-talked-about O’dua Foundation and when it is kicking off?
Previously, I discussed shareholders and stakeholders. The fundamental thing is that there are many segments in a business’s life, especially when it is doing well, including the employees who expect better packages and conditions of service. The government also expects the payment of tax, and when you perform well, they expect a higher amount of tax.
In essence, we have to look for ways to support good causes in society. The O’dua Foundation was conceived by the board and the shareholders, and there is an agreement on how it will be funded.
The board was very magnanimous in ensuring that we have a sustainable fund for the foundation, which is tied to our profits after the payment of tax. We are proposing using a percentage of our profit to fund it, and that is why the company must continually thrive. Our focus is on health, education, and youth empowerment.
Are you not considering supporting the government on the issue of insecurity?
The core responsibility of security is for everybody. Still, fundamentally, it is the government’s responsibility, and every other segment of society contributes to it because of their social impact. If O’dua as a group continues to multiply in business footprints, it shows that we are creating job opportunities and engaging hands that help ensure security. The money the government realizes from taxes is used to fund security.
Will you say that the company’s achievements so far justify its existence?
Like I said earlier, we are into investments, and the six state governments own them. However, the most important thing to know is that the Yorubas are the owners of this investment, while the government is our representative. The progress of this investment organization is our priority as owners, and that is why our present political leaders ought to be commended for appointing people who are qualified for the tasks they do.
In conjunction with the board members and management, we are working hard to advance the organization. Some of our company’s branches are performing well, and others are striving but not to our satisfaction, and we are working to revamp them.
We are also working to ensure that our hotels are world-class and can compete with other five-star hotels in Nigeria and elsewhere. The management and board members are collaborating with investors to revamp the hotels owned by O’Dua Investment to facilitate development and create more employment opportunities for our people. This act will even lead to the extension of the hotels, and if the development is completed, it will benefit everyone and further restore our pride.
Specifically, I will say that both Premier Hotel Ibadan and Lagos Airport Hotel will be completely revived. The board has approved this. More investors are coming in. There will be more rooms and event hosting in terms of conferencing and banqueting to promote tourism will be enhanced. To do this, we need tons of billions of naira.
Are you planning on establishing new business outfits and revamping the old ones?
From the Board’s point of view, we are working on strategies. This strategy, started in 2021, is tagged SRC 2025. It is a five-year strategy—the S stands for sweat, the R stands for reviving, and the C stands for creating.
The ‘Sweat’ is about our underperforming investments. For instance, many of our property estates are underperforming, and we are planning to redevelop them to make them bigger and better so that they have more value and rate. We are collaborating to form a joint venture to revive our underperforming assets. We already have two sure examples at Alakia (Westlink Iconic Estate) and the 16-terrace estate we have not too far from Oyo Press Center, Iyaganku, also in Ibadan.
The hotel ‘Revive’ is a typical example, and we are aware of our limitations as far as society is concerned. For the hotels to be regarded as world-class, we need billions of naira to redevelop them. We are proposing two strategic partnerships to ensure that our hotels are of international class.
Is O’dua Investment Company Limited justifying its reason for being in existence?
Yes, but we need to do more. These are the reasons we came up with those strategies. Talking about creations, there are new sectors that are now trending and attractive to young men and have continuous demand. Creating new businesses means looking critically into the future industry because we look forward to generating more money from it.
Our investment in the oil and gas sector comes from there, and we intend to handle foreign currencies and invest internationally in dollars.
How ready is O’dua Investment for the oil and gas business?
The license was issued in 2020. We paid the signature bonus fully and joined with other partners. The plans on the ground now are to hit the first oil, and it does not come easy. It requires some technical processes, which do not consume naira but dollars.
We are now sorting out the technicalities and financial side of it with our partners. The whole idea is that in 18 months from January 2023, we should be producing our first oil.
What is the level of relationship of O’dua Investment Limited with the DAWN Commission?
The Development Agenda for Western Nigeria (DAWN) and Oodua Investment are like Siamese twins, and we collaborate significantly. The DAWN was set up as a think tank and policy formulation part of the government to help the shareholders—the six southwest states. It is an institution set up to design and manage the development agenda for Western Nigeria.
What admonition do you have for Yoruba Youths?
The Omoluabi ethos is extremely important because its value is not monetary, and one should not miss it. I will urge them to get a proper education to live a meaningful life.
