Nigerian Stock Exchange and other profit-yielding sectors of the economy. From its formative years as an association of friends, it has blossomed into a limited liability company with investment portfolios that guarantee investors optimum and mouth-watering returns on regular basis. Its over four decades of experience in Nigeria’s business landscape have positioned it as a model of profitable long-tenured investment business, and armed it with cutting-edge expertise in making a fortune out of its shareholders’ investments.nvestments (1971) Limited is one of Nigeria’s premier investment societies that intensely engage in investment practices at the
The group started out as an association of friends who nurtured and implemented the idea of an investment club to secure their economic future through special savings and investment arrangements. This group of friends consisting of Messrs. R. A. Raimi, Wole Fadojutimi and E. F. Oke, in December of 1969, forged an alliance with Klub Executives, an association with similar goals, that birthed Investments (1971) Association as a precursor to Investments (1971) Limited. With full incorporation on 3 July 1972, the Association achieved the status of a limited liability company and assumed the name Investments (1971) Limited.
Investments (1971) Limited has made significant contributions to the development of Nigeria’s investment business. While it can rest assured of its place in history as the pioneer investment society in the country, still greater cause for pride perhaps can be found in its ability to create an impressive constituency of hardcore professionals consisting of chartered accountants, business owners, medical practitioners, legal practitioners, architects, and bankers among others. Severally and collectively these professionals, utilizing their robust knowledge, skills and expertise have produced clear-cut road-maps that have revolutionized operations at several investment firms in the emerging markets. In its early years, the firm appointed the Nigeria Stockbrokers Limited as its official stockbroker and leveraged on its status as a social club to promote its recruitment process, bringing on board professionals whose experiences were of immense benefit to the business, and expanding membership to over fifty.
With the establishment of defined structure to govern the affairs of the companies, decisions on investment options were made by a board of directors and shares were allotted to shareholders on an agreed term, thereby opening the floodgate of interest by investors. And one of the strengths of Investments (1971) at this early stage was its concentration on purchase of shares from different public quoted companies. As a result, by the end of 1972, the cash position of the company had hit about six thousand nine hundred and nine pound sterling (£6,909.17s.6p) with an astronomical increase in its portfolio from one hundred and forty eight thousand naira (N148, 000) in 1973 to twenty-five million naira (N25 million) in 1995.
In 1995, the group set up an investment committee consisting of financial and investment experts to offer advice on the buying and selling of shares. Through their advice the company witnessed a huge turnaround as it disposed of shares in inactive companies and concentrated mostly on blue-chip companies. Trading in stocks and shares became more efficient and effective for the firm with its adoption of a computerized stocking system initiated by the Central Securities Clearing System Ltd.
Its insight into this dimension of business assisted it in navigating the tough economic conditions of the 21st century. With the development of a more liberal dividend policy, the group assumed a new path of development. Consequently, in 2003, a yearly declaration of dividends was instituted, a move that reaped enormous benefits for the shareholders. Investments (1971) Limited has received commendations from different quarters, especially as the dividends received by each shareholder summed up to over N5.1 million in 2017. Although the recession that stormed the global economy in 2008 reduced its portfolio from N200 million in 2008 to N70 million in 2010, the company still remains a relevant player in Nigeria’s investment sector, and thrives on the support of many financial institutions including Union Bank Plc. and Zenith Bank Plc. The group was once mentioned in ‘Moneywise’, an economic weekly paper, as one of the most successful pioneering investment clubs in Nigeria.