Adewale Raji was appointed the 8th Group Managing Director/CEO of Odu’a Investment Company Limited in June 2014, and securing a renewal of his appointment for another five year tenure in June 2019 following a performance evaluation by one of Nigeria’s Top Tier (Big-4) Advisory Services and ratification by Shareholders; Oyo, Osun, Ogun, Ondo, Ekiti and Lagos states.
His reappointment has been largely credited to performance, unmatched in the company’s recent history prior to him coming on board, and introduction of reforms that are repositioning the company to drive economic development in the South West, a main objective when it was established 44 years ago in 1976.
“The private sector is about creating shareholders value and enhancing shareholders value in a sustainable manner,” said Raji in a soon to be published exclusive interview with BusinessDay.
In his first five years in charge, he returned the company to profitability through strategic and efficient restructuring. There was significant growth in Profit Before Tax (PBT) from N378m and N495m in 2013 to N849m and N1.061b in 2018 for the Holding Company and the Group respectively.
Also within his first 5-year period, there was Gross Dividend payout of N1.208b to Shareholders, which has been described as a record consecutive annual dividend payment in the history of the Company. “The first time we paid dividends which was in 2015 for 2014 year, was the first time that dividend was being paid in 7 years,” he said in the BusinessDay interview.
The first time we paid dividends which was in 2015 for 2014 year, was the first time that dividend was being paid in 7 years
He has also been spearheading the development and execution of new business initiatives toward expansion of revenue base particularly in Agribusiness and processing, real estate and construction, oil and gas and other key real sectors.
Raji also pushed for the introduction and administration of Corporate Governance mechanisms in the company, as well as a work culture of safeguarding the interest of Shareholders with a very high sense of accountability and transparency.
“The organization did not make desired progress because governance structure was very weak in terms of the role expected of shareholder, the board and management. Everyone did not play according to the rules,” he said of the motivation for the new corporate governance mechanisms now in place. This, Raji says has now changed in the past one and half year in particular, when he got the company’s shareholders to buy into the need for reforms, followed by a governance study and reform that was done, when KPMG advisory services was engaged in June 2019.
Raji is credited with having over three (3) decades of leading industry expertise and is an accomplished professional with multinational experience in FMCG end-to-end Supply Chain; proficiency in Materials Management, Planning, Procurement, Logistics & Distribution and; Route-to-Market Channel Development & Deployment.
On the company’s website, Raji is said to; have a Track record of exceeding set target, growing bottom line while spearheading operational improvements to drive business profitability and costs optimization. Highly successful in implementing business process improvements, change management, developing people and commercializing all aspects of a business, excelled in dynamic & demanding environments while remaining pragmatic and focused on value, people and results.
Navigating turbulent economy and planning for the future
Raji’s six-years in charge at Odu’a have coincided with the two recent economic recessions in Nigeria, but for him, “The diversity of our portfolio has assisted us because we are not a mono sector entity and it meant that we’ve managed to balance the ups and downs”. Citing the recent (2020) recession as an example, Raji told BusinessDay the COVID-19 pandemic has battered its Hospitality business terribly and has also managed on real estate. However, there are other essential parts of the economy, which according to him have not suffered the shocks of recession or the COVID-19 as currently experienced.
“We are lucky that because of the balance of our portfolio we’re able to manage this and I can readily say that the construction sector of our portfolio is one area which has not been affected by recession,” he said.
The company is also betting big on agriculture and agro processing, notably through a new entity that has also been established; South West Agricultural Corporation Limited (SWAGCO). The company’s tomato cultivation in Imeko, Ogun state has been repurposed into Cassava farming, which is tied directly to processing.
“The essence was not just to be a subsistence vegetable farm. If you don’t process, agric is not sustainable,” said Raji. The company therefore had to shift focus to cassava, which is to be processed to industrial starch and to high-quality cassava flour. Presently, the farm has cleared about 560 hectares of land and as at the end of November had planted 218 hectares of cassava.
The entire project is going to 1200 hectares and the emphasis on processing is driven by the company’s determination to create a sustainable new line of business through SWAGCO. According to him, the reason for this is that there is a commitment, courtesy of the company’s ownership, that it must be a thriving and sustainable business; profitable to shareholders, but also with social impact. For the shareholders, the easiest way to deliver social and economic impact for them, is in activities like this where, with partners, the company is able to locate itself in economic activities that impact in the large scale agriculture offers, and the processing that also takes place. He also stated that having seen what COVID-19 has done, whereby people were demobilized, but never stopped eating, this meant a need to deepen the company’s presence in agriculture.
For the future, Raji says the company is also looking into digital and Fintech based companies and investments. “The area of technology and innovation that interests the young generation are areas where you are able to come up with very good and decent returns. Those areas have become of interest to us and we are going to be pursuing them accordingly”, he said.
Healthcare and pharmaceuticals also came top notch in terms of performance according to Raji, and will get more attention in the company’s future.
Education and Career
Raji worked extensively with PZ Cussons Nigeria Group for about 27 years, where he rose to become the Managing Director in charge of Distribution Services overseeing the conglomerate’s Strategic Business Unit (SBU). He rose through the ranks from being a Management Trainee in 1987 to Managing Director status in 2008, and served on the Executive Board of PZ Cussons Nigeria Plc for 8 years (2006 till his resignation in May 2014).
He is credited with overseeing the conglomerate’s planning, logistics and distribution of diversified brand categories in home & personal care, food & nutrition and electrical appliances across the country.
He also led the creation of Distribution Services- new strategic business unit (SBU) and execution of innovative supply chain blueprint for the delivery of consonant nationwide operation of logistics and distribution/supply chain strategy – managing a portfolio in excess of N120b domestic and N3b export sales as at 2014.
Raji had his Bachelor of Arts, B.A. (Hons) from the University of Jos in 1985. He was in the pioneer MBA class of Lagos State University (LASUNBA) and graduated in 1997 with specialization in Marketing.
He is a Fellow of the Institute of Directors (FIoD) Nigeria; Fellow of the Institute of Logistics Management (FILM); Fellow of the Association of Corporate Governance Professionals of Nigeria (FCGP); Member – Institute of Directors of Nigeria, M.IoD. He is also a Non-Executive Director- SKG-Pharma Ltd; Non-Executive Director- Glanvill Enthoven Insurance Brokers & Pension Consultants; Chairman – Odu’a Telcoms Limited; Member, Ikoyi Club 1938 and; Former Member – Board of Directors – University of Ibadan School of Business (UISB).
Raji has also attended courses at Cranfield University (UK); University of Manchester Business School – Executive Development Programme; University of Lagos; Lagos Business School; and Poise – Finishing School, Lagos.
Raji is a recipient of numerous awards such as the Nigerian Tribune Platinum Peerless Corporate Leader Award 2019, National Merit Award Recipient of the National Chapter of University of Jos Alumni Association 2004, and Honourable Fellow of NUJ (Nigeria Union of Journalists) – Lagos Traffic Radio Chapter.
