VFD Group says it will pursue a calibrated Pan-African expansion strategy focused on maximising shareholder value.
This was disclosed by the Group CEO, Nonso Okpala, in an interview with Nairametrics at the company’s 10th Annual General Meeting (AGM) in Lagos on Monday.
The comments come after the group recently closed a N50.67 billion rights issue to support its growth plans across foreign markets.
At the AGM, shareholders also approved a final dividend of N0.25 per share for the 2025 financial year.
What they are saying
Okpala said the group’s approach to expanding its Pan-African footprint would be cautious and deliberate, especially given uncertainty in the global economy. He explained that VFD would only pursue opportunities that align with its growth objectives and create sustainable value for shareholders.
- “Like we mentioned, it has to be a very deliberate effort. It’s an effort that should be calibrated, especially with the situation in the international community — great deal of uncertainty, volatility,” he said.
- “We would have to calibrate it appropriately so that opportunities that we identify and we embark on are such that we’ll be able to harness growth and value for our shareholders. So, in summary, it’s a calibrated effort. We would be watchful, very mindful and very deliberate in how we carry out those expansions.”
Okpala added that the capital raised from the rights issue would strengthen the group’s balance sheet and support future growth, with deployment focused on sectors where VFD already operates while maintaining discipline around governance and execution.
Get up to speed
In October last year, VFD Group announced the launch of a N50.7 billion rights issue aimed at strengthening its capital base and accelerating its strategic growth agenda across Africa and beyond.
At the company’s 8th Annual General Meeting, shareholders approved a capital raise of up to N30 billion, out of which N12.5 billion was successfully raised.
Building on that momentum, the 9th AGM held on May 8, 2025, authorised the Board to raise an additional N50 billion through various instruments.
Following consultations with advisers, the Board approved the rights issue of 5,067,396,400 ordinary shares of 50 kobo each, offered at N10 per share.
The offer was structured on the basis of two new shares for every three existing shares held by shareholders.
The net proceeds, estimated at N49.55 billion, are expected to be used to deleverage the company’s balance sheet, fund geographical expansion into the United Kingdom and Southern Africa, and increase investments in key subsidiaries.
More insights
Speaking at the 10th AGM, Group Chairman, Olatunde Busari, SAN, said VFD’s transition from a founder-led company to a systems-led institution is supported by transparency and regulatory compliance since its listing on the NGX.
- “This is a publicly quoted company and we comply with the rules,” he said.
- “Because of the huge activities and investments that we are involved in, we take the issue of risk management very seriously. And that is why the company has been growing year in, year out. Every year, you’ll note that we always declare dividends.
- “This year, we are giving 25 Kobo for every share of 50 Kobo held by the shareholders. This is not by sheer luck, but it’s calculated determination that we must succeed. And that’s the reason behind the success story of VFD.”
Executive Director, Folajimi Adeleye, also spoke at the AGM.
- “We would not be making leeway into the market without evaluating the opportunities and ensuring that we’ve covered all our business around governance,” he said.
- “We champion governance as a strategy. So our decision-making around even the utilisation of capital is based on best practice and a high level of accountability for our stakeholders.”
Adeleye also noted that VFD’s diversified portfolio helps smooth earnings across business cycles, adding that the board remains confident in the group’s long-term outlook despite Nigeria’s macroeconomic headwinds.
What you should know
In its audited 2025 financial statements, VFD Group Plc reported a pre-tax profit of N14.1 billion on gross earnings of N88.35 billion.
- The group’s pre-tax profit increased by 41.52% from N10.01 billion reported in 2024.
- Gross earnings rose by 13.2% year-on-year, supported by a strong top line composed largely of investment income.
- Investment income rose to N68.3 billion from N65.3 billion in the previous year.
Major contributors to investment income included interest on placements at N17.2 billion, investments at N16.4 billion, loans and advances at N9.4 billion, and logistics and haulage at N8.6 billion.
The company’s latest financial performance provides the backdrop for its expansion plans, as management seeks to balance growth ambitions with shareholder returns and disciplined capital allocation.
