Nigeria’s manufacturing sector has some of the most influential and richest men in the country. Among them, the name of Dr. Oba Otudeko rings a special bell.

Though he started out in the banking sector, he is now a notable personality in the manufacturing sector, creating thousands of jobs along the value chain and improving local production for the country.

This week on Nairametrics’ founders profile, we bring you Obafunke Otudeko’s life achievements and how he has attained such heights.

Early life

Ayoola Obafunke Otudeko was born into a royal family on August 18, 1943, in Odogbolu, present-day Ogun state. This perhaps explains why close friends sometimes jokingly refer to him as “the only Oba without a palace.”

He had his early education at St. John’s School, Oke Agbo, Ijebu-Igbo in Ogun State, and Olivet Baptist High School, Oyo, before he travelled out to study Accountancy in Leeds College of Commerce, Yorkshire, UK.

After returning to Nigeria, Otudeko took a bank employment as a clerk in the defunct Co-operative Bank, Ibadan. Over the next two decades, he moved through the ranks to become the General Manager and acting Chief Executive Officer of the Bank. He voluntarily retired from the bank in 1983 and was appointed a Director to the Board of the Central Bank of Nigeria.

His foray into the business world

Having a mother who was a businesswoman, Otudeko always knew he would someday go into business. His retirement from the bank gave him the time to pursue this interest.

It was at this time that Honeywell Enterprises started off as a trading enterprise, importing and marketing commodities between the northern and southern states of Nigeria in the 1970s. The company later grew into Honeywell Group, one of Nigeria’s leading indigenous conglomerates.

To sharpen his business skills, he took several courses from several international institutions, which include the International Institute for Management Development, Switzerland, Harvard Business School, Boston, USA, Hult International Business School, and Arthur D. Little School of Management, USA.

His many businesses

From a flour mill, the Honeywell Group has evolved into a conglomerate with different subsidiaries in different sectors of the economy.

HOGL Energy Limited is in the oil and gas sector, and was incorporated in 1995. As an indigenous oil and gas marketing company. The company procures, imports, and distributes fuels and gases, as well as lubricants which it produces for industrial and domestic uses.

Honeywell Flour Mills Plc is a food processing company focused on flour-based products including baking flour, ball foods, noodles and pasta. The company started operations in 1998.

Pivot Energy Company Limited (PECL) is in the business of providing engineering, procurement and construction services to the power industry.

RealUraga RealEstate Limited is in the real estate sector, providing funding, whilst managing and developing properties and facilities across the country.

Anchorage Leisures Limited makes its investments in the tourism and hospitality sector, and runs the 5 star Radisson Blu Anchorage Hotel in Victoria Island.

Pavilion Technology Limited provides security services to individuals and clients in public and private space, from electronic security systems, to manned guards, escort services, and security consultancy.

Huston Power Limited is into power generation and distribution in Nigeria, and has been licensed by the Nigerian Electricity Regulatory Commission (NERC).

Courtesy of his many businesses and his stakes in these companies, Otudeko currently ranks among the richest men in Nigeria

The Ecobank imbroglio

Ecobank Nigeria Limited filed a bankruptcy suit to recover an alleged debt of N4.1 billion from the Chairman of Honeywell Group, Dr Oba Otudeko.

The bank claimed that Otudeko had personally guaranteed the loan obtained by three of his firms – Honeywell Flour Mills Plc; Siloam Global Services Limited; and Anchorage Leisures Limited. Following the alleged failure of the firms to liquidate the loans, it fell on him to pay the debts.

The bank, therefore, asked for “a receiving order against estate, funds, investment, shares or other interests of the debtor, principally in Siloam Global Services Limited and in Honeywell Group Limited; Honeywell Flour Mills Plc; Anchorage Leisures Limited; Honeywell Oil and Gas Limited; Uraja Real Estate Limited; Broadview Engineering Limited; Uraja Power Solutions Limited; Honeywell Energy Resources Limited; Hudson Power Limited; Pivot Engineering Limited and Pavillion Technology Limited, which interest is held either directly or through the said Siloam Global Services Limited and/or in any other company within and outside Nigeria.”

It also asked for leave to appropriate or utilise the “investments, shares or other interests of the debtor (Otudeko) in all the companies listed above and in any other company/corporate entity in Nigeria or outside Nigeria in partial or full satisfaction of the debt due.”

Among its prayers, Ecobank wants the court to order Otudeko to immediately avail it his “statement of affairs, statement of net worth and other credible financial details requisite and in furtherance to the Bankruptcy Act.”

Otudeko through his counsel, filed a preliminary objection, urging the court to either dismiss/strike out the suit or stay proceedings “in deference to arbitration.”

He described the suit as an abuse of court processes, contending that it was filed in gross violation of Section 7(1)(a) of the Bankruptcy (Proceedings) Rules Cap B2, Laws of the Federation of Nigeria, 2010.

The case is still in court.

Other services

In 2003, Oba Otudeko established a non- governmental organisation called Oba Otudeko Foundation (OOF) as an official vehicle to carry out his philanthropic acts. Over the years, the foundation has organised empowerment programmes, as well as capacity building, and building of institutions.

The foundation built an Auditorium for Pan Atlantic University, an Administrative Block to All Saints’ College, Edun Village, Ibadan, Footprints Occupational Training Centre, and the Endowment of the Centre of Entrepreneurial Studies of the Olabisi Onabanjo University, Ago Iwoye, Ogun State among others.

Otudeko chairs the Board of Trustees of Honeywell Flour Mill Plc and FBN Holdings Plc and is a member of the board of Lagos Sheraton Hotel.

He is a Fellow, Institute of Chartered and Corporate Accountants, UK, Chartered Institute of Bankers, UK, and Institute of Chartered Secretaries and Administrators, UK. Oba is also a member of the Office of Distinguished Friends of London Business School and Institute of Chartered Accountants of Nigeria.

He is a seasoned corporate governance guru, having served on boards like the Central Bank of Nigeria (CBN), Guinness Nigeria Plc, British American Tobacco Ltd, and Ecobank Transnational Incorporated, headquartered in Lome, Togo, NEPAD Business Group of Nigeria, Delmar Overseas Ltd and Khali & Dibbo Ltd. He is the Group Chairman, FBN Holdings Plc.

At different times, he was also Chairman, First Bank of Nigeria, FBN Bank (UK) Limited, Airtel Nigeria, Fan Milk of Nigeria Plc, Digital Africa Conference Exhibition in Abuja, Business Support Group, National Maritime Authority, and Nigerian- South African Chamber of Commerce.

He was the 16th President and Chairman of Council of the Nigerian Stock Exchange serving between September 2006 and August 2009. He is also a council member, Manufacturers’ Association of Nigeria (MAN), Nigerian Banks Employers’ Association, West African Banks’ Association and the Presidential Advisory Council on Nigeria Industrial Revolution Plan.

Otudeko holds the Nigerian National Honours of Commander of the Order of the Federal Republic (CFR), Member of the Order of the Federal Republic, MFR, and currently serves as a member of the Office of Distinguished Friends of the London Business School (UK).

On Monday, August 18, 2020, the business mogul will be 77 years old. He clearly shows no sign of slowing down his activities and impacts any time soon.

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 48,445 confirmed cases.

On the 14th of August 2020, 329 new confirmed cases and 7 deaths were recorded in Nigeria, having carried out a total daily test of 2,976 samples across the country.

To date, 48,445 cases have been confirmed, 35,998 cases have been discharged and 973 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 344,397 tests have been carried out as of August 14th, 2020 compared to 341,421 tests a day earlier.

COVID-19 Case Updates- 14th August 2020,

• Total Number of Cases – 48,445
• Total Number Discharged – 34,998
• Total Deaths – 973
• Total Tests Carried out – 344,397

According to the NCDC, the 329 new cases were reported from 21 states- Lagos (113), Kaduna (49), FCT (33), Plateau (24), Kano (16), Edo (15), Ogun (14), Delta (13), Osun (10), Oyo (8), Ekiti (6) Bayelsa (6), Akwa Ibom (5), Borno (4), Enugu (4), Ebonyi (3), Rivers (2), Bauchi (1), Nasarawa (1), Gombe (1) and Niger (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 16,369, followed by Abuja (4,665), Oyo (2,943), Edo (2,414), Rivers (1,993), Kaduna (1,755),Plateau (1,689), Kano (1,677),  Delta (1,639), Ogun (1,535), Ondo (1,373), Enugu (980), Ebonyi (911), Kwara (888), Katsina (746), Osun (729), Borno (702), Abia (677), Gombe (648),  and Bauchi (581).

Imo State has recorded 494 cases, Benue (430), Nasarawa (373), Bayelsa (352),  Jigawa (322), Akwa Ibom (246), Niger (229), Ekiti (200), Adamawa (185), Anambra (156), Sokoto (154),  Kebbi (90), Taraba (78),  Zamfara (77), Cross River (73), Yobe (67), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

Data from the National Bureau of Statistics reveals Nigeria’s unemployment rate as at the second quarter of 2020 is 27.1% indicating that about  21,764,614 (21.7 million) Nigerians remain unemployed.

Nigeria’s unemployment and underemployment rate (28.6%) is a combined 55.7%. This means the total number of Nigerians who are unemployed or underemployed as at 2020 Q2.

The data also reveals the worst-hit are Nigerian youths with over 13.9 million currently unemployed.  In Q3 2018, the last time the report was released there were about 13.1 million Nigerian youths unemployed. Youth between the ages 15-24 have about 6.8 million Nigerians out of jobs and another 7.1 million also unemployed.

Key highlights

• The highest unemployment rate was recorded for youths between 15 – 24 years 40.8%,
• This is followed by ages 25 – 34 years at 30.7%.
• NCE/OND and Nursing recorded an unemployment rate of 30.8%
• The unemployment rate amongst second-degree holders (M.Sc/MS/MAdm) stood at 22.9%
• Unemployment rate as classified by Doctorate degree holders is 23.3%

What this means: The NBS also reports Nigeria’s youth population eligible to work is about 40 million out of which only 14.7 million are fully employed and another 11.2 million are unemployed. A high youth unemployment rate is synonymous with increased insecurity and poverty a situation that is also seen as a ticking time bomb.

To put things into context, Nigeria’s unemployed youth of 13.1 million is more than the population of Rwanda and several other African countries. Youth Population is also about 64% of total unemployed Nigerians suggesting that the most agile working-class population in the country remains unemployed.

The Covid-19 pandemic has also worsened the economic condition in the country making it even harder for employers to create more jobs. The private sector has relied on cutting jobs in the guise of downsizing and right sizing to reduce overheads and stay afloat.

The recent data also buttresses the high rate of Nigerians seeking greener pastures outside the country with most of them highly skilled and looking for jobs of the future. According to most recent data, in 2019 about 12,600 Nigerians gained permanent residency in Canada last year helping the country to become the fourth-leading source country of new immigrants to Canada, behind India, China, and the Philippines.

Last year, the Government of Canada revealed Nigeria ranks third in the rating of the countries with the highest number of Express Entry invitations to Canada in 2018. This is revealed in the 2018 report released by the Canada Government. According to the report, a total number of 6,025 Citizens of Nigeria received invitations to apply (ITAs) for Canadian Express Entry in 2018. It was further revealed that Nigeria is just behind China who recorded 6,248 ITAs in 2018.