A time to Consolidate for the Future
Dear Co-operators,
It my pleasure and honour once again and for the final time as President of this great society to address this great family of progressive, resilient investors and cooperators as we stand on the brink of creating inspiring history for the future. We are standing at the beach, about to sail into uncharted waters to discover and conquer new frontiers for the progress of the Society.
Our vision to be an innovative business entity, always seeking opportunities for profitable growth as a staff cooperative society bringing genuine benefits to its members, her associates and the local community of operation is being realized and will be much more realized in the next few years to come.
According to the Holy Bible, “there is a season to everything and a time to every purpose under heaven”. The year 2023 can be considered our season of storms as individuals and as a cooperative society. We are still going through the storms, but we are sailing through gloriously by the help and mercy of God Most High.
Through the various international, national, and corporate storms that we experienced in 2023 and still sailing through in 2024, I am glad to let you know that Group Resources has remained profitable and reliable under the team of Executive Committee Members which you gave your mandate to.
The Operating Environment
The year 2024 experienced a few government policies that put severe pressure on the populace among which are the unification of the foreign exchange windows and efforts toward market-driven FX rate, the focus on tighter monetary policy to control inflation.
Inflation rose from 24.5% in 2023 to over 30% in 2024, particularly driven by food inflation. The government in the boldest of monetary policy moves, continued to use tight monetary policies to control inflation. The policy rate which was set at 18.75% in December 2023 was moved to 22.75.00% in February 2024 and then it was steadily increased until it was set at 27.50% by November 2024. The government in the same vein increased the Cash Reserve Ratio (CRR) from 32.5% to 45% for commercial banks in February 2024, effectively reducing the amount of money available for banks to lend in a bid to decreasing the money supply all to stem inflation.
The Nigeria economy however experienced slight growth as the GDP moderated at 3.4% in 2024 compared to 2.7% in 2023. The government also increased minimum wage to N70,000.00 in 2024 an increase of 133% to provide some comfort for the populace to deal with the economic realities of the nation.
Internally, the Nigerian Agip Oil Company (NAOC), one of the employer companies where most of the members of our society are engaged was acquired by OandO in a transaction which was announced on 4th of September 2023 and concluded on the 22nd of August 2024. The employer companies in response to the economic climate significantly increased the salaries and allowances of the staff, empowering members to increase their savings and investments with the Society, while some liquidated some of their loans.
The Impact
The society continued to experience an increase in members resorting to the Society for loans in unprecedented proportions to deal with our economic and social realities. The society was positioned to enable members who required various loans to meet their short- and long-term aspirations as at when required. The rising contributions from members enabled the Society to have more funds not only to lend to members but also to invest in other investment instruments.
Our Achievements
I would at this juncture like to say, that the executive team you gave your treasured mandate fought a good fight and we have indeed kept the faith with the resources you have entrusted into our hands, and we present to you the outcome of our activities for the year 2024.
1. Profitability
Our shareholders fund grew by 37%, while Members Contribution grew by about 38%. We generated an increase of 41% in our gross profits largely driven by earnings from Loan Interest Income as well as Real Estate Investments which accounted for 52% and 45% of our gross earnings respectively when compared with the previous year, both accounting for 97% of our operating profits.
Our Net Operating Profit grew by 39% and our Earnings Per Share grew by 45% when compared with 2023 performance with a membership strength that reduced by 4% as we closed with 120 active members in 2024.
2. High Contributors Loan
This High Contributors Loan launched in the year 2023 has continued to account for a huge percentage of our income, accounting for about 53% of the earnings of the society in the bucket of Loan Interest Income and 31% of our Gross Income. This is reflective of the rising appetite of our members for access to credit facilities to achieve their various objectives.
3. Dividend
Upon approval by you, the great members of this Cooperative Society at this AGM and in line with the provisions of the law guiding our operations, we hereby propose to pay out the sum of NGN70,798,023.00 which stands at credit of the general reserves.
A Time to Take a Bow
I believe that a good succession is at the root of sustainable success. In this year’s AGM, we are excited to announce that the Society has successfully conducted an election and new set of Executives would be sworn in today to take the Society to yet greater heights.
This is not just a change, it is progress. It is forward movement. It is greater profitability.
Outlook
High Yield Investment Scheme
Foreign Currency Denominated Investments
Group Resources Owned Real Estate
Investments in the Real Sector
Closing
I am grateful to God Almighty for the opportunity and privilege to serve as President of this great Society in the last two terms of two years each. I appreciate you all for the trust, support, encouragement and challenge you gave me and the executive team to work and bring out the best in us even through very challenging times and circumstances. May God bless you all.
Today, as I and the other outgoing executive members take a bow and step aside, I urge you all to welcome the incoming executive with greater trust, support, encouragement and challenge to ensure that the Society keeps making giant strides and greater progress and profitability because it is only together, that we all can achieve more and there is still much more ahead for us to achieve.
I borrow the words of Winston Churchill, to let us know that “this is not the end, it is not even the beginning of the end, it is perhaps, the end of the beginning”. The Society is coming of age and we are stepping into maturity. I encourage you all to continue to be part of this great movement. We have just scratched the surface, we are digging deeper to discover treasures. Don’t miss out of it.
God bless you all.
Thank you for your time and attention.
Thank you for the opportunity to serve you.
Thank you for the support and encouragement as well as criticisms.
Thank you for the bond of fellowship as co-operators.
God bless Group Resources Management Cooperative Multipurpose Society!
God bless the OandO Energy Resources Nigeria Limited.
God bless the Nigerian Agip Exploration!
God bless the Lagos State Ministry of Commerce and Cooperatives!
God bless Nigeria.
Yours in service
Bolofinde, Emmanuel MNI
President
Group Resources Management Cooperative Multipurpose Society