O’odua Group: New Dawn For Regional Economy As Lagos Gets Listed

THE O’odua Investment conglomerate with an asset base worth over N70b, may have acquired the Lagos State Investment Company, Ibile Holdings Ltd., with the recent admission of the latter into the corporation.

Lagos State was admitted into the business group as part of an agenda to integrate states in the Southwest geo-political zone economically, socially and culturally.

In other words, the region has formed an economic block within the country, just like the 19 Northern states, which have New Nigeria Development Company (NNDC) for their economic integration.

The admission of Lagos State into the O’odua group under Governor Ambode’s barely eight months administration was a strategic move both for the region and the new entrant.

Elders and major stakeholders in the Southwest had been at the forefront of the campaign to incorporate Lagos State into the regional business outfit, so as to drive the socio-economic integration of the region.

The campaigners, including the Lagos Monarch, Oba Rilwan Akiolu, alluded to the fact that Lagos State, with its abundant resources, human capital and tested corporate governance practices, will have a lot to offer for the actualisation of the development plan for the geo-political zone.

“If we are able to form alliance with neighbouring states, the population pressure on Lagos will ease off with the envisaged even development of states in the region. The negotiation of this integration dated back to four years ago and it is has become necessary, especially at this period of economic challenges, where most states could hardly pay salaries. Lagos stands out and its strategies can actually rob off on the entire region,” a top government official said in Lagos yesterday.

The outcome of the new marriage will soon become glaring, as infrastructural provision agreements worth billions of Naira would be signed in a matter of weeks. Among such infrastructure is the construction of a Lagos-Ibadan Light Rail.

Governor Akinwunmi Ambode recently described the decision to admit Lagos into O’odua Goup “as a major landmark in the South-Western states’ efforts towards regional integration.”

Lagos State Commissioner for Information and Strategy, Steve Ayorinde, said that Ambode believes fervently that the drive towards integration of the South West of Nigeria cannot be effectively actualised, if all the states in the region failed to pool their resources, work together and maximise their comparative advantages, in order to build a strong regional infrastructural and social linkage.

“The governor observes that with its huge population, its vibrant economic base and its location as centre of economic and business activities in Nigeria, Lagos is uniquely placed to contribute to the development and growth of the O’odua Investment Company Limited (OIC), the investment arm of the group, as well as the integration of South West Nigeria in general,” Ayorinde said.

The former Group Managing Director (GMD) of O’odua Group, Dr. Adebayo Jimoh, said the incorporation of Lagos State into the group was part of the development Agenda for the geo-political zone, as it would now be easy to achieve socio-economic integration and cultural affiliation of the states in the region.

He explained that although the dream to have Lagos in the group is age-long, the current Oba of Lagos, Rilwan Akiolu, facilitated the final move because of his desire to ensure unity in the Yoruba nation.

Said he: “The development agenda for the region might have informed the crystalisation of the final decision taken by the Southwest governors to have Lagos State in one investment basket for the geo-political zone.

“It is something that came at the right time, even though it has been on the drawing board since 2008. The first meeting, where the acceptance of Lagos state was discussed, was at the palace of Oba Rilwan Akiolu. I attended the meeting as the then Group General Manager of O’odua Group. Prince Adebayo Adelusi, the Kabiyesi and his palace chiefs were also in attendance. The Kabiyesi’s intention then was to see a vibrant western Nigeria based on strong economic development.”

Adebayo said the move did not succeed then because of political differences, as most of the O’odua states were under the control of different political parties.

“So, when the issue came up formally, the Oba of Lagos made a formal request that Lagos should be made a member of the group. His request was brought to the attention of Southwest Governors, the O’odua states. But because of political differences, the project did not take off,” he said.

According to Dr. Adebayo, the new development would make the states in the region to form a single economic bloc, even when they have political differences.

“Look at the New Nigeria Development Company (NNDC) owned by the 19 Northern states that are never controlled by one single political party. But they never allowed that factor to affect their socio-economic and cultural affiliation. That is what the new development in the Southwest will achieve on the immediate and long run,” he said.

He explained that Lagos is strategic to the formation of an economic bloc because of its population, location, corporate governance and GDP.

“The acceptance of Lagos will ensure integration, economic and social development, cultural affiliation and tourism development of the Southwest. These are the considerations for bringing Lagos State into the O’odua group.

“Lagos has its own investment company, the Ibile Holding with portfolios that are doing well. So, I see it as a good development, which with good vision and focus will be a lasting legacy, provided they put aside politics. By so doing, the Southwest will be borrowing from what NNDC is doing in the North. O’odua Investment is a conglomerate that is into hospitality, real estate, tourism, blue chip companies and other activities that are yielding revenue. Ibile Holding is not different from O’odua Investment because it has portfolios in many sectors of the economy. It will be an advantage for O’odua Investment to expand its portfolios, as well as enlarge the Investment Company with focus on critical sector for its growth. It will increase the net worth of the group, as well as affect the rating of the emerging group.”

On the advantage of the merger between Ibile Holdings and O’odua group, Adebayo said it would enhance the regional economy that would not be too dependent on the Federal Government for funding. The O’odua states, under the new dispensation, he said, would now be able to harness their potentials, using the merger as the sole vehicle.

The acceptance of Lagos will change the perception, promote corporate governance and business ethics because Lagos is the centre of excellence.

“It will also bring confidence to the real market and affect the decision on where to invest, considering the population and its GDP. It is a great opportunity to have Lagos because it has prime location and is a gateway.

On what is expected of the new O’odua group, Adebayo said he expected a change of leadership style, while government interference in the management “must be a thing of the past.”

“There must be no government interference in the management of the new O’odua, and a lot of sacrifice has to be made because it is like forming a new institution, which has to come with best practices and redefined with business portfolios. It has to focus on businesses that are in the growth sector of the economy such as agriculture, real estate, tourism and with good corporate social responsibility to support youths empowerment programme,” he said.

In the old O’odua Investment Group, each state has 20 per cent equity. But Adebayo said the new equity must be redefined from day one with the entry of Lagos, through its investment company that will now be part of O’odua Group.

“I suspect the equity may no longer be equal. They should target a win-win approach in equity distribution, because Ibile Holding is a strong investment basket of Lagos,” he said.

Former Minister of Health, Prince Julius Adelusi-Adeluyi, who once served as chairman of the O’odua Group, described the initiative as ‘pleasing’, saying it would further the economic interest of Yoruba nation within the ethnic configuration of the country.

Adelusi-Adeluyi, in a statement, said “The initiative by Oba Akiolu led to other discussions at various political and government levels and later metamorphosed into the birth of the Development Agenda for Western Nigeria. It is pleasing to now see that the Yoruba Nation, through the focused leaders in the states, are working closely despite political differences to actualise a strong socio-economic and political development of the region with this latest unity of purpose,” he said.

O’odua is an Investment Company with diverse economic activities, including property development and management, hospitality, telecommunications, printing and publication, agriculture, training and personnel development and capacity building among others.

Apart from investments in limited liability companies, the O’odua Investment Company Limited also owns substantial properties in choice locations in the Ikeja residential/industrial Estates and Apapa in Lagos State, as well as a number of residential and commercial properties in Ibadan, including the Aje House. It also has investments in properties in various parts of Nigeria.