CHAIRMAN’S LETTER TO SHAREHOLDERS

Fellow Shareholders,

I am pleased to share with you, report on the journey we all started together in October 2022. This was the period you graciously entrusted on me and my colleagues on the board, the responsibility of driving your vision of development of Oza community through social impact investment.

In spite of the challenges in the Nigerian macro economy and the lull created by the political environment; being that 2022/23 was a general election, your board has worked assiduously knowing that the task is one that must be accomplished.  Thus, I am excited to report that your company has been firmly established and that we are making steady progress in achieving your mandate.

GLOBAL AND DOMESTIC ECONOMIC CONDITIONS

From the impact of the Covid-19 pandemic to the Russian-Ukraine war, the global economy has been challenged by exogenous variables in the past one year.   As a result of globalization and increasing interconnectedness, the impact of these events was felt in many parts of the world including developing nations of which Nigeria is one.

Thus, in 2022 the global economy was grossly subdued with moderate growth printing at 2.6%.  Analysts project a further decline in 2023 at 1.76% owing to heightened uncertainties as the Russian-Ukraine war continued to overshadow the world economy. In other words, despite recent signs of improvements, the economic indicators point to a muted recovery in the next two years. Trade tensions remain high and could worsen. Concerns about financial vulnerabilities is also on the rise, including in financial institutions, housing markets and low-income countries.

In the domestic economic scene, the year 2022 started with positive expectations due to the moderate post covid recovery.  However, global economic disruptions in supply chain led to a spike in oil prices, rising above $100/barrel and putting further pressure on price levels as inflation rate prints at 24%. Nigeria remains the biggest oil producer in Africa, hence rising oil prices ought to be beneficial.  However, declining output levels and continued importation of refined petroleum products hamper the country’s capacity to reap the benefits of rising oil prices.  Importation of petroleum products puts pressure on foreign exchange and consequently on price levels.

The mix of fiscal, monetary, and exchange rate policies, including the Naira redesign which the previous administration promoted combined to decelerate growth as these policies did not deliver desired improvements in GDP, inflation, and economic resilience.  The consequences of these on social conditions are evident in the high-rate of unemployment, poverty levels and Nigeria’s low ranking in global human development index. 

Also, low consumer demand, high cost of capital and multiple taxation all combined to put pressure on businesses. It is within these economic conditions that Oza Invest Limited is being set up.  Your directors have the capacity and are determined to navigate the challenging environment to build world class social impact company.  The goal is to contribute in no small measure to the upliftment of our community and the empowerment our people.

The outlook is brighter as the new government takes steps to chart a new course embarking on critical policy reforms such as the elimination of petroleum subsidy, the unification of the foreign exchange rates and tax reforms. These reforms will improve efficiency, unlock private capital, and reduce inflationary pressures and ultimately enable businesses to thrive.

Your company, Oza Invest Limited will be here to make adequate use of emerging opportunities.

THE JOURNEY SO FAR

In the past eight months since October when the Board was inaugurated, we have worked assiduously to put the necessary structures that will enable the company take off.  I highlight here, some of the milestone we have concluded to enable a successful take of Oza Invest Limited.

1. Capital Raising

We embarked on a capital raising from shareholders made up primarily of Oza Nogogo indigenes and the various constituent quarters.  We set out to raise the sum of N50 million as initial capital for our business.  I am happy to report that we were able to achieve approximately 97% of this target, raising a total sum of N47.983 million. Today, Oza Invest Limited is owned by 50 shareholders comprising of 44 individuals and six communities.

I will like to thank you all for the enthusiasm you showed and confidence you have in the project by subscribing to the shares of Oza Invest Limited.

• Funds Deployment

For optimal fund management, bulk of the money realized from the private placement was placed in fixed deposit for optimal funds management while awaiting take off instead leaving in a traditional current account.

While the fund is earning interest, part has been utilized to fund set up cost.   Full account is attached.

• Acquisition of Office Premises

With the graciousness of the Ogisi, we were able to acquire the former post office building and annexed the adjoining bus stop for OIL office premises.  We have been able to facelift this structure with appropriate landscaping to give it the ambience it deserves for business.

• Recruitment of Staff

We have concluded the recruitment of pioneer staff comprising a Business Manager and four relationship officers.  All the staff are indigenes of Oza Nogogo.  With this recruitment, we are have taking the right steps of fulfilling one of the objectives of setting up the company which is to give opportunity for Oza youth to develop their career while economically empowering them.

BUSINESS MODEL

As a social impact initiative, the business model is clear and has been clearly defined in the overall objectives.  The business model is therefore centred on a tripod, namely

• Financial inclusiveness through microfinancing
• Legal exploitation of natural resources in Oza Nogogo for the benefit of the community and its people, and
• Cooperative programming as a tool for accessing institutional funding

Microfinance Institution

In line with the business model the first action plan was to set up a microfinance institution which will be the vehicle for financial inclusion in Oza communities through micro lending to local businesses and individuals.

I am happy to report that all that is needed for take-off of OIL micro finance institution has been concluded including people, structure and the acquisition of relevant permit.  Through this vehicle, Oza Invest Ltd is poised to drive micro entrepreneurship by empowering farmers, traders, artisans and other productive individuals who hitherto are hindered by lack of funding to start and/or grow their small businesses in Oza community.

This institution will also be the primary vehicle for driving our cooperative programme through which we hope to attract institutional funds as a driver of development in Oza Nogogo.

Mineral Exploitation

It is a common knowledge that God endowed our community with large deposit of kaolin in our soil and large quantity of sand in our river bed.  However, for a long time these natural resources have been exploited by selfish visitors in connivance with some artisanal miners from our community.   The majority of our people have therefore have long been excluded from benefiting from the exploitation of the resources either in the form of formal tax to the community or corporate social responsibility programmes.

OIL intends to set up a duly licensed mineral exploration company which will be run by people sourced from the community with the full involvement of community officials to exploit these natural resources for the benefit of all.

This activity has been programmed to commence in the next phase of the company’s development agenda.

COMMENCEMENT

As highlighted, the business of OIL is commencing with the microfinance institution.  This will be flagged off immediately the group initiative is launched.  This launch will take place on August 4, 2023.

I am therefore using this medium to invite you all, the owners of this initiative to be part of this epoch-making event in Oza Nogogo.

THE FUTURE

While we are focussed on socially impacting our communities, we have designed our business models to along reasonable profitable lines.  Thus, shareholders should expect to reap good returns on their investment.  In order words, as an investor in Oza Invest Limited, you will be proud that you are part of history by being one of people who contributed to uplift your community.  On the other hand, you will be happy that you did so by rate of return you will get from this investment.

The future is indeed bright for OIL.

Thank you.

Emmanuel Osa Agwoje

Chairman