…Investors approve sourcing of more capital
Firms in the waste management industry seem to target a boost as new opportunities open in the face of local government autonomy in Nigeria, hints at the Initiates Plc have emerged.
At the annual general meeting of ‘The Initiates Plc’, expectation grew strong that the 774 LGAs in Nigeria which have the constitutional mandate to manage waste would soon take control and begin activities.
This is expected to cause a big boost in waste management jobs and procurements as their annual budgets would swell many times over to participate in waste matters. This is expected to boost the industry with more opportunities across the country.
Investors and stakeholders at the annual general meeting of ‘The Initiates’ in Port Harcourt reviewed the industry and agreed that the future of the sector is brighter following expectations in implementation of local government autonomy in Nigeria. The Supreme Court has recently re-asserted LGA autonomy while the Constitution mandates the LGAs to manage wastes.
Assuring shareholders while fielding questions at the meeting after the 2024 report was read, Reuben Ossai, the managing director, told shareholders eager to know the future of the industry that the expected autonomy of local governments in Nigeria would open doors in waste management business and control. “We are watching and waiting to take advantage.”
Responding to press inquiries after the meeting, Ossai explained the optimism in the industry, saying Schedule 4 of the 1999 Constitution (as amended) actually designed waste management to be a responsibility of the local councils. “This matter has been tested in court and won. As it is today, if the LGAs begin to taste a degree of autonomy or independence, the expectation is that waste management would be taken much more seriously.
“But, as it is now, people see it as distant from the LGAs because the states see it as their responsibility. If, however, the LGAs begin to see it as their responsibility, it will bring it close to the ground (LGAs) and people will act quickly and it will attract investors.”
So, the MD said, investors expect that the autonomy that is coming to the local councils would boost investment in the sector as it will boost the revenue of states and LGAs.
He explained that the waste management industry is a living industry. “This is because it survives on human activity. Any activity that man undertakes is expected to generate waste. What, even, is waste? It may be waste of time, waste of man hours, etc. We are imperfect humans created to be so. As we live our lives, there must be outcome, positive or negative. Waste must be created. It is the negative that we address as waste.”
He said it is a very prospective sector, but because it is called waste, people tend to budget little or nothing for it due to Nigeria’s cultural beliefs. “It demands that the law of the land be made to compel people to the extent of taking the services of waste management firms. Ordinarily, everybody needs the services, and if that is the case, then it should be a thriving business. But it is not thriving because enforcement is still low.”
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He said: “People may sound pessimistic, but I am telling you that with the developments that are coming today (recent developments), it is an industry to watch, an industry that may determine what happens in other sectors. So, it is a big sector.”
The managing director said The Initiates is even expanding outside Nigeria such as Uganda where the company has 35% stake in the firm there.
He said The Initiates means creating new things. “We are always creating new ideas, and we believe in innovation. In waste management and industrial cleaning, the problems come in different shapes and continue to change. This means you will continually innovate.
“For instance, a mere change of what you use to cook in your kitchen can change the waste situation around your home. As it changes, you may require new methods of waste disposal around you. Same in your factory. What we are designed to do is to continually innovate ideas to meet different situations and give topnotch service. So, Initiates Plc means new ideas all the time.
Our philosophy is: who taught the first teacher. (It means innovation taught the first teacher.)”
Shareholders were pleased to learn that the company made N1.3bn as profit in 2024 despite the economic situation in Nigeria. Out of this N266m was set aside for stock reinvestment into their shares at N0.30 per share; while N88m was to be released as cash at N0.10, totalling N0.40 per share .
Shareholders commended the management led by Ossai and board led by Joe Ogbonna Anosikeh as chairman.
