President’s Speech at the 2017 AGM

‘WEALTH CREATION/ACCUMULATION MADE SO SIMPLE!

Woa! Another 365days of unimaginable pooling of fund, interest accumulation and wealth creation has just flew by in our own very eyes. Now it is time to sit down, take stock and reflect on our performance.
Given the turbulence in the nation and the uncertainties in the global finance market, for our society, the year ended on a positive note with high expectation for growth in subsequent years.
During the year, our strategy was to ride the curve of the fixed income security market by investing in long dated treasury bills issued by the federal government of Nigeria with yields higher than inflation rate with as much 300 basis points gap. Thus the society’ portfolio of investable funds returned rates higher than previous periods.
In the loan category, members were very active at assessing the portion of the portfolio earmarked for issuance to co-operators. Thus, on the average, at different point in time, 30% – 35% were availed borrowers at average rate of 10.58%. The issuance of loan was commenced upon during the year. This was as a consequence of the decision taken at the last EGM of 22nd July 2015 where embargo on loan was lifted.
During the year, Membership strength increased from 12 (2015) to 20 as at December 2016. This consequently led to corresponding increase in size of contribution by 60.90% (occasioned by acceptance of new members and increased in monthly contribution by old members). As a result of the foregoing, Fund’ asset size also increased from NGN32,114,747 to NGN51,574, 892 (an increase of 60.60%). Also contributing to the asset performance is the increase in constant return on asset at circa 14%. Revenue and net operating return increased at the rate of 31%.
The strategy to leverage on Remuneration & Benefit (R&B) department (HR) for deduction and remittance of members contribution and loans as appropriate has been very effective as we were able to collect all that were expected from members as at due time. We commend the staff at R&B and the finance of department of our employer company for their support in the year past.
Consequent upon the resolution of the members reached at the AGM of 2nd December 2016, the total amount standing to the credit of general reserve as at 31st December 2015 (NGN3,797,566.00) was distributed to members on register as at 31st December 2015.
Members were assisted to acquire consumable (Edible) goods at clearly affordable prices yet with circa 7.5% margin to the society.
In summary, 2016 performance was stellar in all instance and we intend to continue in this direction in the foreseeable future.

Challenges

Our asset base is currently being driven by members’ contribution. We need to improve on this and diversify into areas that will aggressively offer high yield and returns.
Likewise, the society’s investment option is currently limited to placement in FGN fixed Income securities like treasury bills. Though, the yield has been very encouraging, often higher than inflation rate, we need to diversify our investment outlet.
The society currently lacks an administrative office where cooperative documents and records can be kept. The office will also be required to handle issues such as loans to members and follow up on real estate opportunities.

Future Outlook

  • Sustained drive at increasing membership base: we commenced the integration of new members into the society in January 2016. This was based on the mandate given to the executive committee at the EGM of 22nd July 2015. Based on this mandate, the initial membership ceiling is 50. When this golden number is attained, the committee will return to the general assembly for a review of the threshold number.
  • Increase in investment horizons beyond FGN fixed Income securities to include real estate, micro finance banking and agro-allied business among several opportunities available within the context of Nigerian economy.
  • We will explore available investment opportunities in the real estate sector to boost asset base and improve earning power of the society.
  • We will intensify efforts at obtaining office/desk space from the company’ management for the purpose of having a physical presence wherein members can conveniently do cooperative business without hindrances.
  • Concerted effort shall be made to acquire computer system and accounting program that will aid in the effective management of the society’s business and support the web hosting plan of our society

Dividend Payment

Subject to members’ approval at the forthcoming AGM, the sum of NGN3,408,376 been the amount statutorily allowed for distribution after 2016 appropriation, shall be paid out to members on register as at 31st December 2016.

In conclusion, our given objective of wealth creation through pooling of investable funds shall be pursued vigorously. We will endeavour to make our cooperative society more relevant and competitive in return, and ultimately grow a population of economically empowered Eni personnel.

2017 and beyond will be a promise kept – we will constantly be making profit and by extension adding value to your asset.

Thank you for permitting me and my team to serve you.


Omotayo Bamishe
President