2017 Stewardship
“Success springs up from inside a heart that beats to the drum of creativity until its gushing reverberation brings change to the entire community”.
Bishop TD jakes (SOAR!).
This is our story: reverberating and intoxicating SUCCESS of an entity that has become the beautiful bride that every progressive minded member of staff wishes to belong to. Our success story can be explained by our growing numeric so much so that my simple arithmetic shows that the society was roughly 1,814 days old as at December 31st 2017. That is five magical years of seamless operations on a very lean structure. Year in, year out, growth in all indices. In this short time, we have collectively progressed from a mere 13 magic number to an exquisite 36 members; Net operating result grew by 132%; Asset growth of 92%; driven by 87% growth in Contribution. Yet, the growth refused to wane. Once more, it’s an amazing story which only the initiates can tell. Just as membership number grows, so also is your asset growing. We have been able to return a commendable 14.1% on asset. This is far above average inflation rate as at 31st December 2017 and still out performed average benchmarked 364 days treasury bills of the federal government of Nigeria. These achievements are without considerations to the happenings within the financial market, which is our primary place of earning returns to the society. The general reduction in treasury bills rate coupled with unfavorable exchange rate regime affected our effective rate of return. However, the loan category returned a constant rate of 10.58% as consequence of 46% growth in loan asset issuance. This shows that members’ appetite for making good use of their savings is on the increase and the society is the end beneficiary. Our success story emanated from the realization that we couldn’t continue in the old ways of the existing cooperative societies in our companies and expect result different from their not-commendable achievements. Today’s result is a culmination of the fact that we are running a Society different from those in our league. Our Society runs ethically on the principle of transparency and inclusiveness. The executive committee is always willing to hear from members objectively on areas that needs improvement that will collectively add value to our asset. This is in addition to the uncommon commitment that has been shown so far by all members of the society. Consequent upon the resolution of members reached at the Annual General Meeting of the society on 15th December 2017, the total sum standing to the credit of General Reserve as at 31st December 2016 (NGN3, 408,376) was paid out to members on register as at 31st December 2016 either in cash or as capitalization. In our growing social responsibility interest, the society was able to assist members in the acquisition of consumable (edible) goods at rate competitive with market rate yet at circa 7.5% return to the society.
Membership
Active membership number grew from 20 in 2016 to 38 in 2017 by 18 additions. Unlike previous year, there were no exit during the year.
Challenges
Our asset base is yet being driven by members’ contribution. The society needs 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 cooperative’s day-to-day business activities.
Future Outlook
- 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.
- Acquisition of accounting program that will aid in the effective management of the society’s business.
Proposed Dividend Payment
Subject to members’ approval at the forthcoming AGM, the sum of NGN7, 905,438 been the amount statutorily allowed for distribution after 2017 appropriation shall be paid out to members on register as at 31st December 2017 under the guideline and supervision of Lagos State Ministry of Industry and Cooperative Society. In conclusion, we are bold to say that we have built a strong trust foundation, upon which we are bonding and collectively, we will continue to soar higher on this special flight. We solicit for your continual support so that the current tempo may be sustained. Once more, thank you for the privilege availed my executive team to serve you.
Omotayo Bamishe
President