Odu'a Investment Company Limited also known as OICL is a strategic investment and asset management firm founded in 1976 to hold and manage the industrial and commercial assets of companies owned by the government of the Western State of Nigeria. Its creation was brought about after new states were carved out of the Western State in 1976 and it began operations with inherited assets of the Western Nigeria Development Company.[1]
| Formerly | Odu'a Group |
|---|---|
| Company type | Private, Holding company |
| Industry | Real estate, insurance brokerage |
| Predecessor | Western Nigeria Development Corporation(1959 -1973), Western States Industrial Investment and Credit Corporation (1973-1976) |
| Founded | 1976 |
| Headquarters | Cocoa House, |
| 1.353 Naira (2018) | |
| Total equity | 118 Billion Naira (2018) |
| Owner | Ogun State, Oyo State, Ondo State, Ekiti State, Osun State,Lagos State |
| Subsidiaries | Wemabod Estates, Cocoa Industries, Westlink Integrated Agriculture, Glanvill Enthoven Insurance Brokers |
From about seventeen subsidiaries where it maintained majority interest in 1985, it had decreased to seven subsidiaries in 2019. The manufacturing and industrial interests of the firm has shrunken but the firm has continued to make investments in the real estate sector[1] and also continues to maintain minority participation in many legacy assets such as WEMA Bank, Tower Aluminium and Nigerite.[1]
OICL operations have been impacted both by national and regional political and economic developments. During a period of military rule, military governors automatically became board members but changes in government or redeployment of governors negatively impacted board stability. In civilian administrations, appointment into the board is sometimes based on political patronage not on knowledge or skill, with appointees acting as representatives of their respective states of origin.[2][3]
History
editOICL inherited banking (National Bank and Wema Bank), Insurance(Great Nigeria Insurance and Nigerian General Insurance) and various industrial ventures managed by the Western Nigeria Development Company (WNDC). WNDC was founded by the government of the Western region to make direct investments in commercial sectors of the regional economy.[4]
In the first fifteen years of its existence, many assets directly controlled by OICL gradually lost value. It depended on income generated by investments in associated companies where OICL held less than majority interest to provide the bulk of its net earnings.[2] But companies controlled by the group incurred the larger share of capital investment.[2] The company also went through a period of mismanagement and embezzlement by senior managers.[2]
In 2015, most of its income were generated from leases earned from its properties.[5] To reposition the company towards growth, the firm made increased investments in service sectors that have proven durable such as insurance brokerage and real estate. It also revitalized land holdings in Ogun State with the cultivation of a tomato farm as raw materials for tomato paste processing while it re-acquired majority interest in Cocoa Industries Limited.[6]
Subsidiaries
edit- Lagos Airport Hotel
- Wemabod Estates
- Western Hotels
- Cocoa Industries Ltd
- E&O Power and Equipment Leasing Limited
- WestLink Integrated Agriculture
References
edit- ^ a b c Idowu, Ajibade (2015). "Functional Ethnicity, Regionalism and Regional Integration of South West Nigeria: A Study of Odu'a Investment Company Limited" (PDF). Global Journal of Human-Social Science Research. 15: 31–34.
- ^ a b c d Oyarinu, Abimbola (2019). "Bleeding the Commonwealth: An Assessment of Odu'a Investment Company Limited, 1985-2008". Covenant University Journal of Politics & International Affairs. 7.
- ^ Forrest, Tom (2019). Politics and Economic Development In Nigeria. Routledge. p. 152. ISBN 9781000307405.
- ^ Fadahunsi, Olu (1989-01-01). "The Holding Company Approach to Public Enterprise Management in Nigeria". International Journal of Public Sector Management. 2 (2). doi:10.1108/09513558910132756. ISSN 0951-3558.
- ^ Oji, Helen (June 30, 2015). "Odu'a Investment repositions for profitability". The Guardian (Lagos). Retrieved 2020-07-06.
- ^ Olanrewaju, Sulaimon (29 October 2018). "The rise and rise of Odu'a Investment". Nigerian Tribune (Ibadan).
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