Nigerian insurance tycoon Wole Oshin’s Custodian projects $18-million profit for Q4 2024

Feyisayo Ajayi -
Key Points
  • Custodian Investment forecasts a 119.74% profit increase in Q4 2024, expecting profit after tax to reach N30.98 billion ($18 million).
  • The company projects a 31.59% rise in gross revenue, reaching N144.8 billion ($89 million) in Q4 2024 due to robust sector performance.
  • Operating expenses are expected to rise, but net realized profits are forecasted to soar by 1,592.69%, driven by extraordinary investment returns.

Custodian Investment, a Lagos-based investment group led by insurance magnate Wole Oshin, is predicting a substantial profit increase for the fourth quarter of 2024. The company expects its profit after tax to soar by 119.74 percent, reaching N30.98 billion ($18 million), up from N14.1 billion ($8.15 million) in the same period last year.

This forecast reflects Custodian’s strong financial performance and cost management efforts, even amid challenging economic conditions. In a voluntary earnings update, Custodian announced a 31.59-percent rise in gross revenue for Q4 2024, projecting N144.8 billion ($89 million) compared to N110.04 billion ($67.7 million) in Q4 2023. The group credits this growth to robust performance across its insurance, pension, and investment sectors.

Efficiency boosts profitability

The company’s operating expenses are expected to increase to N104.17 billion ($64.1 million) from N80.78 billion ($49.7 million) last year. However, Custodian anticipates a significant boost in net realized profits, with a 1,592.69 percent increase to N2.42 billion ($1.47 million), primarily due to extraordinary investment returns.

Additionally, cash flow from operations is forecasted to climb to N54.88 billion ($33.45 million), demonstrating enhanced operational efficiency. Nonetheless, Custodian expects negative cash flow from investing activities, amounting to N33.32 billion ($20.26 million), attributed to substantial investments in financial assets.

Leadership and market positioning

Founded in 1991, Custodian Investment has become a key player in Nigeria’s financial sector under Oshin’s leadership. Holding a 26.81-percent stake in the company, Oshin has played a pivotal role in navigating market challenges and ensuring steady growth.

His strategic vision continues to drive Custodian’s profitability, supported by a diversified portfolio and a firm market presence.

As the Nigerian economy remains unpredictable, the company’s forecasted profit surge is expected to reinforce investor confidence in Custodian’s financial stability and future growth potential.