It’s extremely challenging to be an industrialist in Nigeria — 81-year-old Aare Oyefeso 

•Reveals why he chose business over salary

•Says resilience, integrity, hard work built  Kotco Group 

•’High interest rates, energy costs still threatening manufacturing

By Nnamdi Ojiego 

At 82, Aare Kola Oyefeso carries the quiet confidence of a man who has spent a lifetime building institutions, nurturing enterprise and giving back to society. From modest beginnings in a family of artisans and traders to becoming the founder of the Kotco Group, his journey mirrors the story of resilience and industry that has defined Nigeria’s indigenous business class for decades. Born into a self employed household, Oyefeso’s earliest lessons in commerce came not from textbooks but from the workshop and the marketplace. His father was a goldsmith while his mother traded textiles at the bustling Gbagi Market in Ibadan. By his late teens, he was already immersed in both worlds, assisting in the craft of goldsmithing while also learning the rhythms of buying and selling fabrics. Those early experiences shaped his outlook on work and enterprise and planted the seeds of the entrepreneurial path he would later pursue.

 Over the years, that path led to the establishment and growth of Kotco, which evolved from a modest business venture into a diversified group with interests linked to Nigeria’s energy and industrial ecosystem. Beyond industry, Oyefeso’s influence extends into philanthropy and civic life. In a gesture that reflects his deep commitment to community welfare, he donated a health centre to his community in memory of his late wife, a project aimed at expanding access to healthcare for ordinary people. For him, such acts are less about recognition and more about gratitude and responsibility, a belief rooted in his conviction that success ultimately comes by the grace of God and should be used to uplift others.

 His leadership has also been visible in social institutions.

A respected member of Lagos Country Club for decades, Oyefeso once served as its president and now chairs its Board of Trustees, guiding the governance of one of the country’s most prominent social and professional clubs. In this interview, the veteran industrialist reflects on the choices that led him into entrepreneurship at a time when many of his peers sought the security of salaried employment. He also speaks on the challenges of running a manufacturing oriented business in Nigeria, the values that guided the growth of Kotco, and the lessons younger entrepreneurs must embrace to survive in today’s economic climate. Excerpts:

At a time when many professionals preferred stable salaried careers, what drove your decision to build Kotco from scratch?

 First and foremost, the point to understand is that I am an incarnate. Coupled with this, I came to understanding the purpose of it all id est. This, which is regarded as karma in spirituality determines to a large extent our life’s patterning. This same karma gave me a birth where enterprise was not something abstract. It was simply part of daily life. My father was a goldsmith, a skilled craftsman who relied on his own hands and reputation to earn a living. My mother, on the other hand, traded in textiles. She travelled, bought fabrics, and sold them in the market. So from a very early age I saw what it meant to depend on one’s initiative rather than a monthly salary. By the time I was about seventeen, I had already begun helping in my father’s workshop. Goldsmithing requires patience and precision, and assisting him exposed me to discipline and craftsmanship. At the same time, I also helped my mother sell textiles at Gbagi Market in Ibadan. That environment was a very practical school of business. You learned quickly about negotiation, customer relationships, and the simple truth that profit depends on effort and good judgment.

 Because of that early exposure, I grew comfortable with enterprise long before adulthood. Business did not frighten me. In fact, the idea of salaried employment made me somewhat uneasy. I used to observe friends or acquaintances who worked in offices, waiting for the end of the month to receive their wages. Quite often their salaries would barely last until the next payday. Ironically, there were occasions when I could lend money to some of them, even though I was much younger. Those experiences shaped my thinking. I began to see entrepreneurship not merely as a way of making money but as a path to independence. It gave you room to innovate, to grow, and to create something of your own. So when the opportunity came to establish Kotco, it did not feel like a reckless leap. It felt like a natural continuation of the environment in which I had been raised.

In the early days of Nigeria’s power support industry, what convinced you that indigenous companies could compete with foreign firms?

 My conviction was based on a very simple observation. Nigerians are not lacking in intelligence or education. In fact, in many academic settings our people perform extremely well. You find Nigerian students excelling in universities across the world, often outperforming their peers. So I never believed that technical competence was the problem. The real issue has always been the environment in which people operate. In many developed countries, professionals work within systems that support their productivity. There is reliable infrastructure, access to finance, and policies that encourage innovation and manufacturing.

 If those same conditions exist here, Nigerian professionals can perform at the same level as anyone else. I had great confidence in our engineers, technicians, and managers. What they needed was an enabling environment where their skills could flourish. That belief was what encouraged me to pursue indigenous participation in the power support industry. I saw no reason why Nigerian companies could not produce equipment, manage operations, and deliver technical solutions that meet international standards. With the right training and support structures, there is nothing inherently limiting about Nigerian capacity.

When you founded Kotco, what were the toughest early barriers you faced and how did you overcome them?

 Like every serious venture, the early years were challenging. Perhaps the most difficult obstacle was the cost of finance. Accessing capital in Nigeria has never been easy, especially for manufacturing businesses that require substantial investment in equipment and infrastructure. Then there was the issue of energy. Manufacturing depends heavily on power supply, and the cost of generating your own energy can be extremely high. These two factors alone can make entrepreneurship in the industrial sector quite daunting. However, entrepreneurship demands perseverance. You cannot expect the road to be smooth. If you are easily discouraged, then business may not be the right path for you. What sustained us was the determination to continue despite setbacks. There is an old saying that if you remain focused and resilient, there will always be light at the end of the tunnel. I have found that to be true in my own experience. Challenges will arise, but persistence often opens doors that initially appear closed.

What is it like to be an industrialist in Nigeria?

 It is extremely challenging, I must say. Manufacturing here involves navigating several structural difficulties. The cost of funds is very high, which means borrowing for expansion or investment can quickly become burdensome. Energy is another major concern. When power supply is unstable, companies must rely on alternative sources such as generators, which significantly increases production costs. Then there is the issue of policy consistency. Businesses plan investments over many years, sometimes decades. When policies change suddenly or unpredictably, it creates uncertainty that can discourage long term industrial growth. To complicate matters further, there are times when the economic environment unintentionally favours importation rather than local production. Imported goods may enter the market at lower prices, making it difficult for local manufacturers to compete. Yet despite these challenges, one truth remains clear. No country can achieve sustainable economic development without a strong manufacturing base. Industrialization creates jobs, builds technical capacity, and strengthens the overall economy.

Looking back, which single decision most influenced Kotco’s growth into a diversified group?

 When people reflect on success, they often try to identify a particular decision or turning point. Of course decisions matter, and leadership requires making choices that shape the direction of a business. However, I must say that much of our progress has been guided by divine providence. Human effort is important, but there are moments when outcomes exceed what one could reasonably attribute to planning alone. I believe that the grace of God plays vital role in every genuine achievement. You can work hard, make good decisions, and surround yourself with capable people, but ultimately success also requires blessings beyond human control. So while we certainly made strategic choices over the years, I remain convinced that divine favour has been a central factor in whatever success we have experienced.

What values guided your leadership style as Kotco expanded?

 Three principles have always guided my approach: integrity, punctuality, and diligence. Integrity is essential in business. Without trust, no organization can survive for long. Customers must believe in the quality of your products. Employees must believe in the fairness of your leadership. Partners must believe that agreements will be honoured. Punctuality is also important because time reflects discipline. When leaders respect time, it influences the culture of the entire organization. Diligence, of course, is the willingness to work hard and remain committed to excellence. Businesses grow when leaders and employees alike are dedicated to continuous improvement. Another important aspect is ensuring that employees feel valued. When people believe their contributions matter, they become more committed to the success of the organization. At the same time, customer satisfaction must remain a priority. Without customers, there is no business. Finally, organizations must be willing to adapt. The business environment changes constantly, and companies that fail to adjust eventually fall behind.

Which period tested you most as a business leader?

One of the most difficult challenges has been the sharp depreciation of the naira. Currency instability affects every aspect of industrial operations. When the value of the currency declines significantly, the cost of importing raw materials and equipment rises dramatically. That increase quickly translates into higher production costs. Manufacturers then face a difficult dilemma. If they raise prices to reflect higher costs, they risk losing customers. If they absorb the costs, profitability declines. However, Nigerians are remarkably resilient. Over the years we have learned to adapt quickly to changing realities. Survival in our environment often depends on flexibility and creativity.

Across your decades in business, what changes have encouraged you most?

One reform that made a positive difference was the liberalization of the import licensing system. Before that change, import licenses were often controlled by a limited group of individuals who would then resell them to others. That arrangement created unnecessary bottlenecks and inefficiencies. When the system was liberalized, it allowed more businesses to access imports directly. This created a more transparent and equitable environment for commercial activity. Reforms that remove artificial barriers tend to encourage entrepreneurship because they allow businesses to operate more freely.

What support would you want from government?

 Three things are particularly important. First, lower interest rates. When borrowing costs are too high, it discourages investment in manufacturing. Second, strategic protection for goods that can be produced locally. Countries that successfully industrialized often protected their emerging industries until they became competitive. Third, government institutions should be encouraged to patronize locally made products. When public agencies support domestic manufacturers, it strengthens the entire industrial ecosystem.

Many younger entrepreneurs talk about resilience. What does real resilience look like?

 Resilience means remaining committed despite adversity. Business will always present obstacles. Markets fluctuate, policies change, and unexpected difficulties arise. What matters is the determination to continue moving forward. There is a biblical passage that says anyone who puts his hand to the plough and then looks back is not fit for the task. I think that principle applies very well to entrepreneurship. Success requires persistence. Those who endure challenges often find that perseverance eventually brings results.

Let’s talk briefly about your social life and Lagos Country Club, where you served as president and now serving as its Board of Trustees chairman.

 Like many institutions that endure for decades, Lagos Country Club has evolved considerably over time. When it was first established by its British founders, the structure and culture reflected that heritage. However, since Nigerians assumed leadership several decades ago, successive administrations have modernized the club while preserving its traditions. Today it remains an important social and professional gathering place where people from different sectors interact. Institutions like that play an interesting role in society. They create spaces where friendships are built and ideas are exchanged in a more relaxed setting than formal workplaces.

What has leadership at the club taught you about legacy?

 Leadership always carries responsibility. Whether in business or social institutions, the goal should be to leave the organization stronger than you found it. Another lesson is humility. Leadership is not about domination. It is about service. I believe strongly in the concept of primus inter pares, which means first among equals. A leader should guide and coordinate, but not behave as though others are inferior. Respect and collaboration are essential for healthy institutions.

Your philanthropic work, especially in community health, has been consistent. What personal experiences or beliefs shaped your approach to giving?

 Philanthropy is rooted in gratitude. When you reflect on your life and achievements, it becomes clear that many factors contribute to success. Hard work is important, but so are opportunities, guidance, and the grace of God. Recognizing that reality creates a sense of responsibility. If you have been fortunate, you should try to extend a helping hand to others who may not have had the same opportunities. Helping people, particularly in areas like healthcare and community development, is one way of expressing that gratitude and fulfilling a moral obligation to society.

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