2015 Stewardship
It is three years already that 13 promising micro investors who dared to dream came together to commence a journey into an uncharted terrain; starting with barely two million Naira and with no financial institution willing to take a bet on us for basic account opening requirements. Today, we have transited from a savings club to a multi-purpose cooperative society with asset worth NGN32.1million and still growing. We have recorded an over the years growth of 268% in contribution and achieved a ROA of 20.04%. Return on investment has consistently been higher than prevailing inflation rates and better than returns on investment by other societies in our sector.
Ours is a story of “Common, dare to dream!”. Indeed, we are dreamers with a clear vision to create wealth jointly by the pooling of our individual resources together. My team is very happy that our esteem members dared to entrust their hard earned money in our care. Your trust has yielded significant result which I believe you are proud of. During the year, one of our founding members, a very strong support in the beginning exited the employment of Eni Nigeria due to mandatory requirements. His exit put a little dent on our purse and the total income for the period took a hit of up to half a million Naira paid out to him as his accumulated earnings and four million Naira as refund of capital/contribution balance.
Also during the year 2015, we were able to obtain our employers support for the management of deductions and remittances of members’ obligations to the society. This has greatly improved our planning and forecasting activities. Towards the end of the year, loan issuance to members commenced. This was precipitated by the decision reached at the annual general meeting (AGM) of the society on 22nd July 2015. Interest income on the issued loan represented 0.75% of the gross earnings of the society. While working within the limit of loan as 25% of the society’ asset, we look forward to increase income from members’ loan even as loan asset grows. At close of business, application was received from 5 matriculated staff of NAOC Limited. These applications are being processed and it is our expectation that more staff will indicate interest in becoming members in 2016. With more members, our asset base will increase and in return more income will be generated for the common good of all.
Outlook
In the immediate future, we expect that the society’s return on asset will consistently be higher than comparative return in the macro financial market. In order to achieve this objective, we will endeavour to deliver on the followings:
- Concerted effort will be made to increase our membership base – as at close of business 5 applications for membership were received and they were approved for enrolment with effect from January 1st 2016. In coming years, more progressive minded staff of Eni Nigeria will be encouraged to join the society.
- We will change our investment orientation and diversify the society’s portfolio to sectors like real estate, micro finance banking and agro-allied business among several opportunities available within the context of Nigerian economy.
- To create an office space for the purpose of administration of the society and equip the space with human resources and other tools that will assist in delivering on our objectives.
Appropriation of Profit
The management committee hereby proposes that the amount of NGN3, 797,566, standing to the credit of the general reserve account be appropriated as share of profit to shareholders and share of return on investment to contributors. This shall be done in proportion that will be tabled and approved at our forthcoming AGM.
As your steward, we assure you that we shall continue to ensure the safety of your asset and continually grow it in order to create wealth for today and the future. Thank you.
Omotayo Bamishe
President