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“Up till about 25 years ago, Singer Nigeria Limited had factories in Nigeria where they produced Television sets, Radios, Refrigerators, Standing fans, etc. This company had a unique corporate marketing strategy. They didn’t sell on cash-and-carry but on credit to their wholesalers. The reason for this strategy is not clear, but it eventually led to their downfall.
Nigerians began to take advantage of Singer’s credit system by applying as wholesalers using fake business names and addresses. Many would pack the products and never pay up as at when due. This led to a significant loss for the company. By 1996, Singer went down and closed all her factories in Nigeria. This is a clear example of how a flawed marketing strategy can lead to the downfall of a company.
At the Cocoa Industries Limited, Ikeja, as the company was at the verge of closing down completely, I met the last MD of the company. As at that time, himself, his driver and four security men were the only remaining members of staff of the company. This is a case in point of how mismanagement and lack of accountability can lead to the collapse of a once thriving business.
I asked the MD what led to the terrible state of the company at the time when there was an increase in the consumption of cocoa products. He narrated his experiences in all the Oodua Groups; how the various MDs, GMs and Managers would collude with the drivers and security men to load products out without proper entries. This kind of dishonesty and lack of transparency is a recipe for disaster in any business.
The MD also mentioned how those goods were delivered to Oga’s concubines in different towns and cities, who would never remit the proceeds to the company. This kind of corruption and misuse of company resources is detrimental to the success of any business. It ultimately led to the downfall of the Cocoa Industries Limited and the closure of its factories.
Of all the over 150 companies wholly owned by Oodua Group, none is functioning again as at today. This is a clear indication of the widespread mismanagement and lack of accountability within the group. Only those companies where Oodua jointly owned with others are working, which further highlights the importance of transparency and proper management in sustaining a business.
When next you are worried about the parlous state of affairs in Nigeria, maybe some children need to ask their parents to sincerely tell them the source of the money they used to build their various houses. It is important to question the source of wealth and whether it was obtained through dishonest or unethical means.
The ruination of Nigeria didn’t begin in one day. It was through minute indiscipline, impunity, arrogant exercise of power, ineptitude and greed. This statement emphasizes the impact of these negative traits on the overall economy and society. It highlights the need for ethical business practices and responsible leadership in ensuring the success and sustainability of businesses in Nigeria.
In conclusion, the cases of Singer Nigeria Limited and Cocoa Industries Limited serve as cautionary tales of how mismanagement, lack of accountability, and unethical practices can lead to the downfall of businesses. It is imperative for companies to uphold transparency, ethical business practices, and responsible leadership in order to thrive and contribute positively to the economy.”
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
1st February, 2024.
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