Odua Investment is strategically driving growth
With a rich history dating back to its founding by Chief Obafemi Awolowo, Odua Investment Company Limited has evolved into a diversified conglomerate with a strong presence in various sectors, including real estate, hospitality, insurance, agriculture, and oil and gas. Under Otunba Bimbo Ashiru‘s leadership, the company is focused on consolidating assets, driving growth, and making a positive impact in the Southwest region and beyond. Odua’s approach is built on robust investment strategies, effective risk management, and a steadfast commitment to transparency and accountability. In this interview, Ashiru offers valuable perspectives on the intricacies of the company’s operations, the challenges and opportunities that lie ahead, and the role Odua plays in shaping Nigeria’s economic landscape. He also highlights the company’s future plans, philanthropic initiatives through the Odua Foundation, and the significance of its recent Aa- rating from Agusto & Co. With a deep understanding of the region’s economic dynamics, Ashiru sheds light on Odua’s vision for sustainable growth and development, and its potential to drive economic prosperity in Nigeria, ultimately benefiting its stakeholders.
What are the current priorities and goals for Odua Investment Company?
Our current focus is on turning around Odua’s fortunes, consolidating our assets, and seeking new investment opportunities. Building on this, we’re committed to creating jobs and opportunities, which is reflected in our partnerships and investments. Furthermore, I’m proud to say that we’re a financially strong and liquid company, well-positioned for growth and investment.
How does Odua Investment Company define long-term focus, and what sectors does it prioritize?
The definition of long-term focus can vary depending on our organization’s priorities. At Odua Investment Company, our diverse portfolio reflects our evolution over time. As a large conglomerate, we operate in diverse sectors such as real estate, hospitality, insurance, agriculture, ICT, and oil and gas, with various joint partnerships. Founded by Chief Obafemi Awolowo, Odua’s origins were rooted in real estate and construction, with iconic properties like Cocoa House and Western House. This foundation in real estate laid the groundwork for our expansion into other areas, including cement manufacturing through Lafarge. However, due to circumstances during the military era and subsequent restructuring, Odua ceded its real estate business to Wemabod, becoming a holding company.
What have been some of the key achievements and milestones for Odua Investment Company over the past few years?
Over the past five years, we’ve successfully executed our 2025 strategic plan, achieving our targeted profit goals. Building on this success, we’re now transitioning to a new 2025 strategic plan, which focuses on consolidating our assets and prioritizing agriculture. This shift is reflected in our significant agricultural holdings, with 30,000 hectares of land across the South West region, where we’re cultivating crops like cocoa, maize, and cassava. In line with this strategy, we recently signed a deal worth N10 billion with cocoa exporters. Furthermore, we’re revamping and expanding our dormant assets, including Premier Hotel and Epe Plywood, to drive growth and profitability.
What guiding principles drive Odua’s investment decisions, and how do you evaluate potential opportunities?
We believe in best practice, which means we prioritize investments that promise strong returns. Consequently, we will not invest where we think we’re not going to have a good return. To ensure this, we have set criteria that we rigorously apply before investing. This disciplined approach has driven our successful investment in Iwosan, Aradel, and several other companies.
How does Odua Investment Company approach risk management when evaluating potential investments?
To balance risk and returns, we conduct thorough assessments of potential investments, evaluating their viability and associated risks. This rigorous evaluation process helps us determine whether the potential returns justify the level of risk involved. Building on this assessment, our approach is to strike a balance between risk and reward, diversifying our investments across different risk profiles. Rather than solely focusing on low-risk investments, we deliberately seek a balanced portfolio that includes medium-risk opportunities with potential for higher returns. By doing so, we effectively manage risk while still pursuing growth and profitability.
How does Odua Investment Company manage its diverse portfolio of investments, and what tools or frameworks do you use?
Managing our diverse portfolio of investments requires a structured approach. To achieve this, we oversee our subsidiaries through regular meetings with managing directors, where we review performance and strategy. In these meetings, we also utilize a balanced scorecard to assess each investment’s management and progress. This framework is crucial, as it enables us to ensure that all investments are aligned with our overall goals and are managed effectively. Given the significance of these investments to the Southwest region, we recognize the importance of responsible governance and decision-making. Accordingly, before making any investments, we conduct thorough evaluations and obtain necessary approvals to ensure that our actions are well-informed and strategic.
What impact has Odua Investment Company had on the economic development of the Southwest region, and how do you measure your success?
Odua Investment Company has had a significant impact on the economic development of the Southwest region. Through our various initiatives, we’ve created jobs and contributed to economic growth, earning recognition as a point of reference for successful investment and development. This impact is further evident in the success of our projects, such as our farm initiatives and investments in various sectors. Building on this success, we’ve made a significant impact in the Southwest region and beyond, earning recognition as a well-managed company. As a result, our model has drawn interest from other regions, with counterparts from the North seeking to learn from our experiences.
Can you tell us about the philanthropic activities of the Odua Foundation and its impact on the region?
The Odua Foundation, led by Dr. Mrs. Awolowo Dosunmu, has made notable contributions to education and IT development in the region. Through these efforts, we’ve not only driven economic growth but also supported human capital development and social progress. Furthermore, the dedication of the Foundation team members is truly commendable, as they have consistently demonstrated a strong work ethic and commitment to our mission
What does Odua’s Aa- rating from Agusto & Co mean for the company’s future growth and investment prospects?
Agusto’s evaluation process involves a thorough assessment of our corporate governance, financial efficiency, risk management, and overall financial health. Based on this rigorous assessment, they’ve recognized our strong financial prudence and capacity to manage resources judiciously. Notably, our management team has met all the required parameters, demonstrating our commitment to excellence. Building on this success, we’re taking our governance to the next level by engaging an international body to provide additional oversight. This strategic move will not only help us maintain international standards but also further enhance our management practices.
How would you attribute Odua’s success to the support of the South-West Governors, and what specific contributions have they made to the company’s growth?
The Governors have done exceptionally well, and their support has been instrumental in Odua’s significant success. Building on this strong foundation, we’ve leveraged our resources and expertise to drive growth, particularly through partnerships with Lagos, Osun, and Ekiti states. In addition to these efforts, we’re also exploring opportunities in mining and other sectors. Furthermore, we’ve established strategic partnerships with academic institutions to support research and development, fostering innovation and expertise. Our ability to integrate and collaborate among Southwest states has been a key factor in our success. The Southwest Development Commission serves as a prime example of this effective collaboration, enabling us to enhance our collective impact. In recognition of their crucial role, we appreciate their support and ensure that we obtain necessary approvals.
Can you share some insights on how your professional network and experience in the banking sector could contribute to the success of Odua Investment Company, particularly in attracting investments and driving growth in the Southwest region?
My relationship with multinational companies has been instrumental in achieving our goals. This network was built during my time in the banking sector, and I was able to leverage these connections effectively when I became a commissioner in Ogun State. Over my almost eight-year tenure, I harnessed these relationships to attract investments, and I’m proud to say that Ogun State became a major industrial hub in Nigeria. This transformation was evident in the frequent visits from two presidents, Goodluck Jonathan and Muhammadu Buhari, who came to commission industries. In fact, during my tenure, Ogun State attracted a remarkable 75% of foreign direct investment into Nigeria. Building on my success in the private sector, I’m delighted to have replicated it in the public sector, driving growth and development in the state.
Reflecting on the military era, what specific challenges did Odua face, and how has the company been working to restore and rebuild in the post-military era, promoting good governance and accountability?
The military regime’s approach to governance was problematic, as they didn’t understand democratic principles. Consequently, this led to mismanagement and abuse of power, with appointed executive chairmen treating public resources as their own. As a result, many of our assets were misappropriated, and the economy suffered significantly. However, with the advent of democracy, we’re working to restore and rebuild the company, promoting more transparent and accountable governance practices that will prevent similar issues in the future.
What role does Odua Investment Company see itself playing in Nigeria’s economic development, and how do your CSR initiatives and investment strategies contribute to making a positive impact, particularly in the Southwest region?
Odua Investment Company is already playing a significant role in Nigeria’s economy, and we intend to continue supporting the country’s development. To achieve this, our goal is to make a positive impact through CSR initiatives, investments, and strategic engagement that benefits the Southwest region and Nigeria as a whole. Building on our rich history, Odua has a unique legacy – the Western Nigeria Government had previously loaned the Federal Government £12 million. Given this heritage and our status as the only surviving regional investment company in Nigeria, we’re well-positioned to contribute to the country’s economic growth and development.
How is Odua ensuring sustainability and continuity beyond the current leadership, and what steps have been taken to develop future leaders?
One of our key objectives is to establish Odua as a world-class conglomerate, and we’re making significant progress towards this goal. To ensure we sustain this momentum, we’ve implemented robust systems and processes that maintain our high standards, allowing future leaders to seamlessly build on our achievements. Furthermore, we’ve developed an effective succession plan to ensure continuity and sustained success, thereby solidifying our position as a leading conglomerate.
