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Oftentimes, when we talk about waste management in Nigeria, all that comes to mind is the disposal of solid waste materials from our homes to dumpsites. But there is so much more to waste management. There are even companies that are solely engaged in the management of industrial waste. One of such companies is the little-known, NSE-listed The Initiates Plc.

On that note, welcome to Nairametrics’ company focus, a weekly column that sheds light on some of the not-so-popular companies that are listed on the Nigerian Stock Exchange (NSE). Today, we shall be focusing on The Initiates’ business model, its target market, ownership structure, competitors, and most especially, its overall financial performance.

Information contained in this article is meant for equity investors who may be prospecting new investment opportunities. Let this serve as a guide to you and help you make informed investment decisions.

Corporate information about The Initiates Plc

Nature of its business model – Although the company’s rather unique name may have you thinking otherwise, The Initiates Plc is actually an industrial waste management company based in Port Harcourt. According to information made available by the company, its business model entails the provision of industrial cleaning and decontamination services. Other companies pay hefty sums of money for the services rendered by our company focus.

Incorporation and listing on the NSEThe Initiates Plc was initially incorporated as a limited liability company on March 3rd, 1995. On June 24th 2015, it became a public limited company. And then it was listed on the Nigerian Stock Exchange on October 25th, 2016.

L – R: shows Haruna Jalo-Waziri, ED, Capital Markets Division, NSE; Oscar Onyema, CEO, NSE; Ossai Reuben Mustapha, MD/CEO; Joseph Ogbonna Anosike, Chairman, The Initiates Plc at listing of The Initiates Plc at the Exchange

A total of 889, 981, 552 units of shares were listed by way of introduction on the Alternative Securities Exchange Market (ASeM) of the NSE. As at the time of listing, the company’s share price was N0.85 per share. Two years since its NSE debut, the company’s shares outstanding have not changed one bit, as it is still standing at 889, 981, 552, with a market capitalisation of N649.6 million. However, share price has dropped from the initial N0.85 to N0.73.

A closer look at the company’s services

Being an industrial waste/hazardous content management company, services rendered by The Initiates Plc include:
1. E-waste processing
2. Decontamination
3. Thermal Desorption
4. Industrial Cleaning
5. Incineration
6. Onsite Drilling Waste management
7. Municipal Waste Management
8. Asbestos Management
9. Remediation
10. Provision of waste management facilities
11. Consultancy services, etc.

A look at the company’s target market

As already mentioned, The Initiates Plc is not just a general waste management company. Instead, it serves a very specific market audience, offering industrial waste management services to both public and private companies. Note that most of these companies operate in the oil and gas sector. According to information available to the public, some of The Initiates Plc’s customers include the following:
• West Africa Ventures
• Total, SNEPCO, Shell
• Shebah Marine Services Limited
• Shlumberger, Spetralon Energy,
• Pan Ocean
• National Petroleum Development Company Limited
• NigerStar 7
• Nigeria LNG Limited
• Globe Star Engineering, CAMAC Energy Inc.
• ADDAX Petroleum, etc.

The company’s ownership structure

An analysis of the company’s shareholding structure shows that it is 100% owned by Nigerians. According to the company’s full-year 2018 financial report, some of the notable entities with majority shareholding include:

Deal book 300 x 250

• Dvcf Oil and Gas Plc: This company owns 37.85% of The Initiates Plc’s entire shareholding.
• Ossai Reuben Mustapha: 21.43%
• Samuel Afolayan: 7.35%
• Ozoherebe Gordon: 6.58%

A look at the competition

The Initiates Plc may be the only waste management company currently listed on the Nigerian Stock Exchange, but it is definitely not the only industrial waste management firm in the country. What this means, is that it has competitors, some of which include: Del Waste Management Company, Universal Care Ltd, Fedoz Nigeria Limited, etc.


Here are the company’s top executives

1. Mr Joe Ogbonna Anosikeh: Chairman
2. Mr Reuben Mustapha Ossai: Managing Director
3. Prof. Edward Alikor: Non-Executive Director
4. Chief Charles Oboh: Non-Executive Director, and
5. Mr Joseph Ebinum: Non-Executive Director

A look at The Initiates Plc’s recent financial performance

The Initiates Plc earned a total revenue of approximately N700.8 million in full year 2018, which marked a 5.12% increase, compared to the N664.9 million earned in 2017.

Profit after tax for the period stood at N102.2 million, marking a 19.81% increase compared to N81.9 million profit after tax recorded in 2017.

A breakdown of the company’s 2018 full year result shows that its Thermal Desorption Unit generated the most revenue of N314.6 million. This is followed by the Waste Treatment and Disposal Unit, which generated N226.6 million. Industrial Cleaning and Decontamination Unit generated a total revenue of N134.7 million, followed by the Incineration unit which generated only N24.7 million.

In conclusion

Note that the Equipment supply and E-waste units did not generate any revenue during the period. And in 2017, these two units did not generate any meaningful revenue either. This either implies that the two segments require more investment, or they are simply irrelevant to The Initiates Plc’s overall scheme of business. That said, the company should look into this and figure out the right way forward.




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