Ire Bricks will thrive with S/West govts’ patronage —Adedeji, MD

Mr Abiodun Adedeji has varying experiences with the Oodua Investment Group before he took over as the Managing Director of Ire Clay Products Limited in 2011. In this interview by SAM NWAOKO, he x-rays the state of the company before his appointment and the progress so far made. Excerpts:

On assumption as the Managing Director of Ire Clay Products Limited, what was the state of affairs with the company before your coming and the changes that your presence as the MD has brought to the company ?

I was appointed as Project Director in November 2008. Then, the company had been moribund for 17 years. The government of Ekiti State felt there was the need to revitalise this company, they then approached the Oodua Investment Company Limtied  for joint collaboration towards reopening it. Thus I was appointed as Project Co-ordinator to ensure that all the parties to the project including the expatriates, local workers, government, banks, shipping agents, insurance companies, among others that have one thing or the other to do with the project are well co-ordinated. But nothing substantial was done between 2008-2011, However, when Dr. Kayode Fayemi came, he kick started the project, which he inaugurated on Oct 16, 2012. Governor Fayemi provided the leadership not only in terms of funding, but in terms of general supervision of the entire value chain. We worked very hard and the job was completed within three years. So, I was seconded as the M.D on July 1, 2015 by the Oodua Investment after the board of Ire Bricks had previously approved the appointment in line with CAMA (Companies and Allied Matters Act 2004). So, I transited from Project Co-ordinator to M.D.

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It seems that Oodua Investment Company has not been able to perform to its optimal level as a legacy Yoruba nation industrial base. What is Oodua Investment doing to revive other moribund companies within the conglomerate?

My take on that is that the problem is about determination and competence. Most of those companies died because of management insensitivity to various factors. What we did in ire bricks was because we had a GMD then who believed in it and we had a governor who also believed in it. So until those two are present, you cannot see any moribund company working, so you must have a leadership that believes that moribund companies should work. But where leadership doesn’t believe in it, there is nothing anybody can do. So only what we would be doing is to rely heavily on rent and dividends. So for now, the current governors for instance, the governor of Oyo State is looking at waking up those companies and very soon,I am also sure that Oodua will change its strategy and look at those moribund companies and that is the only way to go. Rent and dividends cannot sustain Oodua, it has to go by the way of waking up those companies. Finally, if we want stabilisation, there must be a way of developing capability from within that understands how to wake up these moribund companies and that is the only way to guarantee employment for our youths. Rent and dividends cannot guarantee employment.

Governor Fayemi renovated the factory before he left office in 2014, how did the company fair under his successor, Governor Ayo Fayose?

I had challenges after the revitalisation was completed because Fayemi was voted out of office, but the newly elected governor then, Mr. Ayodele Fayose never believed in industrialisation. Therefore, he never visited us throughout his tenure. 80 percent of the public projects that we were supposed to do to stabilise the company was not given to us. We have few things that we needed to attend to for smooth operation of the company, but no fund to pursue it. There was even misinformation to the general public that the company was not working despite 13 weeks of   advert in N.T.A and occasional appearances at EKTV. People were not convinced that the place is working, we had to borrow money from a bank to complete the project.

What are the other obstacles confronting the company?

The first obstacle was how do we get working capital to run the operation which was a very big challenge. What would have been immediate solution could have been government patronage but no way. Through our hard work, we were only able to attract customers from Maiduguri, Damaturu, Abuja, Lagos, Port Harcourt among others, who gave us advance payment to produce. This patronage is too small compared to the plant capacity, but we are focusing on the survival of the plant till the time, either government patronage will come or we secure big contract from private developers. Our second challenge is the problem with the construction sector which has been negative in the past five years and yet to recover.

Our product is not like Bournvita, Tom-Tom, Milo, or milk where repeat purchase is easier and the price is affordable. Average individual cannot be building houses everyday and our plant is capable of producing burnt bricks that will take care of four different three bedroom bungalow in a day, which means, in a month we can produce bricks that will build 90 bungalows of three bedroom flats. So the only option like any other big company is government patronage. Even Dangote’s cement turn over is largely purchased by government for building and other in infrastructural projects. So, Ire burnt bricks also will survive if government in the whole South West adopt the products for public projects. Another thing is that, the electricity required to power this plant in kilowatts is more than the volume of electricity coming to Ekiti State, so to that extent, we rely solely on generator.

Another challenge which is germane is about the staff. They take the company as ministry, they think whether we produce or not, they must collect their salaries and they don’t also believe in performance evaluation. So, whether they meet target or not, whether they produce or not, they must collect salary and since we are relying heavily on customers’ deposits, how do you pay salaries when you have not supplied your customers? So I will continue to educate them but they seem to believe that it is a government-owned parastatal and government should be able to pick up their bills which I don’t believe. But despite that I continue to educate them and continuously appeal for their understanding but that strategy cannot change until the company is able to secure heavy patronage from big contractors, developers and governments.

Ire Clay Products seem to be the only existing industry in the state, what exactly are your products like?

We have 12 types of products but I will divide it into five major areas. namely, one, load-bearing for setting and partitioning of building, two, sun breakers, three; wall facing, the one we used to beautify the high court in Ado Ekiti. We also have decking pot used for decking and floor tiles used mostly for swimming pools and walk ways and solid used for pavements and sometimes used to build armoury or oven.

What is the response of the present administration towards full revitalisation of the company?.

Ire burnt bricks is the luckiest company in Ekiti state, because of the second coming of Governor Fayemi. Immediately after he was sworn in 2018, he visited us in November to look at our problems and see what he could do quickly towards salvaging the company. His visit brought within one week, increase in turn over because he is a respected governor, he has positive image and substantial goodwill which has increased our customer base in the last seven months. To that extent, the problem of sales is being gradually addressed and once the sales is stabilised, income will roll in and we will be able to place adverts that will attract additional customers and patronage. Also, we will be able to replace our machines to increase productivity, ensuring that staff welfare is improved for motivation and reduction of industrial accident among others. Another area that gladdens our heart is Fayemi’ s resolution to take this company to the next level despite opposition by using the product from this company for public projects. Most especially, we are being positioned to supply burnt bricks for the College of Agric at Isan-Ekiti and the four newly approved secondary schools in Ado Ekiti to test run our capability and trust to deliver. On the issue of electricity, the state government is working very hard to ensure that BEDC improves and increase the volume of kilowatts distributed to the state. Lastly, Governor Fayemi also, being a well experienced private and public sector person, supported some of our initiatives to drive the company outside politics and ensuring that no cash no supply is maintained. Like I said, we have an excellent governor who also brought life to this company. He understood perfectly what our problems are and the systematic approach to the solution, more so that this is the biggest manufacturing company in Ekiti State and the only one in solid minerals which is the baby of Mr Governor. It will also interest you that, it is the only company that could be revived within Odua Group in the last 20 years! So the only thing is massive patronage from government or private developers which we are pursing vigorously, more so that we have enabling and conducive environment now in Ekiti State.

 What are the qualities of your products that makes it unique and competitive  among other products?

Advantages of our products are too many. Our products have: aesthetic appeal, thermal and acoustic insulation, zero maintenance cost, fire and water resistance, durability, plastering and painting not required except by choice.

Will you agree with insinuations that the joint ownership of Ire Clay Products between states and Oodua investment is the major hindrance to its effective operations.

The joint ownership between Oodua and Ekiti has added value and in fact, the only reason why the company has not gone under like Ikun Dairy or Ikogosi Resort, which Dr Fayemi is just reviving again. For Ire Bricks the two owners, Ekiti State and Oodua know their roles and appreciate the partnership as well as respecting the laws and regulations setting up a private limited liability company. Government interference is at low ebb and politics is played down during decision-making. Above all, we have a understanding governor, who is walking the talk and is keen at bringing investment to the state. So, we are lucky that the company survives those traumatic years and we are now set to move at high speed on the run way before finally taking off. We are optimistic that our end year result in 2019 will be better than previous years because of the commitment and assurances of the governor and the environment he has been able to create in the last seven months.