ODU’A INVESTMENT COMPANY LIMITED “Odu’a Investment” announces the retirement of the Group Managing Director/Chief Executive Officer, Mr. Adewale Raji, and the appointment of Mr. Abdulrahman Yinusa as the Group Managing Director / Chief Executive Officer effective 1st of June, 2024.

Mr. Adewale Raji’s retirement follows ten (10) years of dedicated service as Group Managing Director of the forty-seven (47) year old conglomerate. As Group Managing Director, he oversaw the Group’s return to a growth and profitability trajectory through strategic restructuring of the operating structure of the group to improve efficiency. During his two (2) tenures, the company grew Profit Before Tax (PBT) from N378 million (2013) to a high of N2.2 billion (2021), paid a total of N2.56 billion in dividends so far, diversified into Agribusiness, Oil and Gas and other sectors through strategic partnerships, and repositioned the group’s key subsidiaries and assets. He also helped improve the group’s corporate governance framework, and culture of accountability and transparency amongst management and staff. Prior to his appointment at Odu'a Investment, Mr. Raji was the Managing Director, Distribution Services at PZ Cussons Nigeria Plc where he served for 8 years on the Board.

Mr. Abdulrahman Yinusa currently serves as Executive Director, and the Group Chief Financial Officer of Odu’a Investment. He is a thoroughbred finance professional with over three (3) decades in-depth experience in the Financial Services Industry. He will be responsible for implementing the Group Board’s shared vision and plan, as well as ensure continued execution of existing strategic projects. Prior to joining Odu’a Investment, he retired from Diamond Bank (now part of Access Bank) as an Executive Director and Chief Financial Officer. In the course of his over thirty (30) year career, he demonstrated unique leadership skills, versatility and excellence, and developed expertise in several areas including asset management, local and international capital raising, mergers and acquisitions, strategy, treasury and business transformation. Mr. Yinusa graduated with a B.Sc. Accounting from the Ahmadu Bello University, and holds both M.Sc. Economics and MBA (Finance) degrees from the University of Lagos. He is also an alumnus of the University of Cambridge, IMD, Switzerland and INSEAD, France where he attended top management programmes.

Odu’a Investment has also appointed Mr. Yemi Ajao as Executive Director, and Group Chief Investment and Business Development Officer, a role he will assume on the 15th of January 2024. Mr. Yemi Ajao has over twenty (20) years’ extensive experience in oil and gas operations (engineering), strategy, corporate finance, real estate, venture capital and private equity. He graduated with a B.Sc. Chemical Engineering from the Obafemi Awolowo University, and holds an M.Sc. Petroleum Engineering from the University of Houston, and an MBA from the Jones Graduate School of Business, Rice University, Houston, USA.

Commenting on these leadership changes, the Group Chairman of the Board, Odu’a Investment Company Limited, Otunba Bimbo Ashiru, stated; "Today we announce the retirement of a Group Managing Director who superintended over a pivotal period in Odu’a Investment’s evolution into a world class conglomerate. On behalf of the Board, I will like to express our sincere gratitude to Mr. Adewale Raji for his exceptional leadership, and for steering the ship with such vision, courage and professionalism during his tenure. We are also delighted about the smooth leadership transition, and I will like to congratulate the Shareholders and the Board on Mr. Abdulrahman Yinusa’s appointment. I have no doubt in my mind that he will take Odu’a Investment to another level of growth, especially with the foundations laid over the past few years”.

Commenting further, the outgoing GMD, Mr. Adewale Raji said: It has been a great honour to have been entrusted by the Group’s Shareholders and the Board to superintend over the affairs of the business from June 2014. The period witnessed remarkable changes in the financial performance and corporate governance standing of the Group. I am delighted that the modest successes recorded in portfolio rebalancing and asset optimization in our notable chosen sectors of Real Estate, Hospitality, Financial Services, Agriculture, Energy, etc are going to receive accelerated transformation under my worthy successor (Mr Yinusa) and the excellent crop of talent that the Group has attracted under the support of the Board in these past few years’’

Victor Ayetoro

Media Relations

08035645584

victor.ayetoro@oduainvestment.com.ngx   

www.oduainvestment.com.ng

The Postmortem Sub-Committee of the Federal Account Allocation Committee (FAAC) has recommended that the Federal Government refund the about N228 billion loan it took from the non-oil excess revenue account to fund the 2023 general elections.

This is according to a report on the inflow into and payments from the non-oil excess revenue account for the period January 2020 to October 2023, which was signed by sub-committee chairman, Kabir Mashi, on December 14, 2023.

Mashi, who was once an acting Chairman of the Federal Inland Revenue Service (FIRS) is also a Federal Commissioner of the Revenue Mobilization and Fiscal Allocations Commission (RMAFC), representing Katsina State.

The genesis of this report can be traced back to a FAAC Plenary meeting held in September 2023. During this meeting, members raised alarms over the substantial deductions from the Non-Oil Excess Revenue Account, prompting a deeper investigation.

These concerns were primarily centred around the large sums being borrowed by the Federal Government. The sub-committee further wrote to the Office of the Accountant-General of the Federation (OAGF) to provide some information as it examined the Non-Oil Excess Revenue Account Ledge.

FG made N864.16 billion in deductions 

The loan taken for the 2023 general elections makes up about 26% of the total deductions between January 2020 to October 2023, according to the sub-committee.

There were other deductions made for different purposes, such as a refund of gas flared penalty to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The findings of the sub-committee read: 

• “That the total inflow into the Non-oil Excess Account for the period January 2020 to October 2023 was N2,607,067,427,659.48;
• “That the total amount distributed to the three tiers of Government was the sum of N1,035,298,000,000.00 in the period under review;
• “Total deductions from the Account for other purposes amounted to N846,159,187,753.64 in the period under review;
• “That the sum of N20,009,001,423.57 was deducted as Refund of Gas Flared penalty to NMDPRA;
• “That the sum of N20 billion was transferred to the 20% of the Amount due to States on ECA withdrawals Account;
• “That the sum of N136,571,812,718.58 was used for Refund of PAYE to States and the sum of N31,311,515,329.52 for FCT respectively;
• “That FGN borrowed the sum of N41,844,164,400.00 for the payment of final Settlement of Ground Rent Liabilities;
• “That FGN borrowed the sum of N227,998,501,190.36 for the funding of 2023 General Elections;
• “That amount borrowed by FGN for Payment of Contingencies to the Office of the National Security Adviser was N2,750,000,000.00;
• “That the sum N28,608,118,834.81 was deducted from the Account to Refund Paris Club Loan Deduction from SRA of FCTA;

• “That the difference between Foreign taxes figures on Component Statement and Actual was deducted from the Non-Oil Account to the tune of N73,066,073,856.80;
• “The sum of N30,000,000,000.00 was deducted from the Account for refund to CISS being amount borrowed for FIRS’s Priority Projects;
• “That there was no record that the amounts borrowed by FGN were paid back.”

In its recommendations, the Sub-Committee recommends that the total deductions of N864.16 billion for other purposes should be refunded back to the account.

It also stressed that further deductions from the account should be in line with the vertical revenue allocation formula.

The recommendation for the Federal Government to refund the borrowed funds is a significant step towards ensuring transparency and accountability in the management of Nigeria’s financial resources.

More Insights 

While there seems to be no known specific information available about the creation of a non-oil revenue account in Nigeria, its concept appears to parallel the structure of the Excess Crude Account (ECA).

Established in 2004 by then-President Olusegun Obasanjo, the ECA functions as a natural resource fund, primarily serving as a fiscal buffer during economic downturns.

The ECA accumulates revenues exceeding the benchmark crude oil price set in the national budget, providing a savings mechanism for the country.

In a similar vein, it is conceivable that the non-oil revenue account operates on a parallel framework, wherein surplus revenues from non-oil sources are earmarked for savings.

Notably, the Federal Government’s approach to withdrawing from these accounts has occasionally deviated from the standard vertical revenue allocation formula outlined by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC).

This formula currently allocates 52.68% of revenue to the Federal Government, 26.72% to states, 20.60% to local governments, and 13% for derivation.

The Federal Government’s deductions from the non-oil revenue account, often contrary to RMAFC stipulations, highlight ongoing challenges in adhering to established fiscal management protocols.

Also, efforts to revise the revenue allocation formula under the previous administration of Muhammadu Buhari led RMAFC to propose a new distribution: 45.17% for the Federal Government, 29.79% for states, and 21.04% for local governments.

This proposal represented a shift in resource allocation, reducing the Federal Government’s share by 3.33%, while increasing the states’ and local governments’ shares by 3.07% and 0.44%, respectively.

However, akin to prior attempts to revise this formula, the proposal was not approved. There appears to be no immediate prospect of such a revision under the current administration, reflecting a continuity in the status quo of revenue allocation in Nigeria.

[Nairametrics]