Lagos State Governor, Babajide Sanwo-Olu, has appealed to agro-food companies to partner with the government to reduce the cost of food in the state.
He made this call during a courtesy visit by the senior management team of Olam Agri Nigeria Ltd., led by Managing Director, Anil Nair, to the Lagos State House in Marina on Thursday.
Governor Sanwo-Olu emphasized the need for collaboration between the government and private sector stakeholders to make food more affordable for residents of Lagos State.
“There is no better security these days than food. Today being the first day of August, you can see in the streets in Nigeria there’s some sort of hunger protest.
“How I wish that you and I, after this meeting, will make a broadcast that food prices have gone down by 25 per cent, it will be great news for both of us.
“That speaks to the reason why we chose you to listen and hear and be able to work together. You are in a strategic position and you have that structure and that capacity,” he said.
The governor said that Olam remained a strategic brand that had caused a great turnaround in Lagos State.
He recalled his days as a banker in the banking sector, saying that Olam was an account that everybody usually wanted to have.
Mr Sanwo-Olu said everyone wanted Olam’s account for the simple reason that they are fast growing, aggressive and are in an industry that had cheques to deposit on a daily basis.
“It wasn’t a company where you need to wait 90 days or 100 days for their cheques. Bankers would hang around their offices, and as the sales were going on, they were just picking the cheques.
“So for us, as government, we watch that growth. I know you must have gone through your challenges along the line, either government policies that have somersaulted or some of your good plans but you stayed the course,” Mr Sanwo-Olu said.
He urged the brand to consider its longstanding relationship with the state and forge a partnership with the state by looking beyond the current economic situation and leveraging it.
“We’re also happy that half of your entire workforce is in Lagos. These are all indicators that you are here for the long haul.
“Beyond that, I urge you to look at the market, to look at the industry as a critical industry; food security, food systems is as critical as people trying to safeguard either their medical security or even sovereign security in terms of war.
“I believe part of the things that you owe the state and the people that have also been loyal to your products is to consider what level of giveback you are making consciously.
“I don’t want to use the word, “Corporate Social Responsibility” but what level of slow down in shareholder appreciation are you going to throw back into the system,” he said.
Mr Sanwo-Olu called for a sustainable partnership, saying: “At a difficult time like this, it shouldn’t be only government reducing cost or that is attempting to have a corner store in the market to buy and sell at reduced prices.
“You must be able to tell your shareholders that you’ve been in this environment for such a long time today that it should not be about profit-making.
“You should be willing to say, let’s even go into this market and just cover our cost, let’s pass on, let the people feel our critical support.
“If we go by our Return on Investment, we should be selling this thing at N5000 but because we are committed and we have also made decent returns in this environment, we are able to say we will sell lower,” he said.
The governor said the longevity of the brand was more essential than immediate gratification.
He added that this was the type of partnership that the country and state needed to keep at this period.
“Because of what essence will it be if we cannot guarantee that Olam will be here in the next 15 years?
“I want you to take this message back. The private sector needs to know that there are times when it does not have to be about value to the shareholders.
“Because of the food security that we seek, because of the logistics nightmare that is happening everywhere, and because of the economic challenges that are everywhere. Let us be able to say to our citizens and customers at difficult times, we still want you to see us as partners not as mere people.
“If that’s all you take away from here, I’d be a happier person,” Mr Sanwo-Olu said.
He called on shareholders and stakeholders to be more deliberate and focus on giving back to the society.
“I want us all to see ourselves as stakeholders in this environment. It’s not us versus them, we are all joint stakeholders.
“We have a responsibility to ensure that nothing happens to any of your facilities and warehouses because we know the consequences.
“We need to slow down on shareholders’ return; we need to be alive for us to be able to earn that dividend,” Mr Sanwo-Olu said.
The governor further said that economic indices never lasted forever, adding that the government and its partners needed to know what their roles are in the area of food security.
He urged the Olam executives to partner with the government in pushing resources and investment into the food sector deliberately.
“We need to be alive today to be able to make a profit tomorrow,” he said.
Mr Nair commended the Sanwo-Olu-led administration for its commitment towards empowering its citizens and catering for residents’ needs.
(NAN)
