RESTRUCTURING AT DAAR COMMUNICATIONS
1. Restructuring Decision: The decision to retire 10 senior management members was described as overdue by Dokpesi Jr. He explained that many of these individuals had been with the company since its inception, with some serving for over 20 years. According to corporate governance rules, the maximum tenure for such positions should have been two terms of five years each. Therefore, the retirements should have occurred 5-6 years earlier.
2. Corporate Governance Compliance: The restructuring is seen as necessary to comply with corporate governance standards required for publicly listed companies. This move is intended to build investor confidence and help the company attract the capital needed to grow and expand.
3. Financial Challenges: DAAR Communications has been facing financial difficulties, with shareholder capital eroding over the years due to continuous losses. These issues have been flagged in past annual reports, and the company is now looking for ways to raise capital, either through equity or debt, to address these challenges.
4. Future Vision: Dokpesi Jr. emphasized the need for DAAR Communications to adapt and reposition itself in the Nigerian media industry. The company plans to embrace new strategies and technologies to continue being "the African voice" and recover from its financial difficulties.
5. Legacy of DAAR Communications: Despite the current challenges, Dokpesi Jr. highlighted the historical contributions of DAAR Communications, including its pioneering role in private broadcasting in Nigeria. He reaffirmed the company’s commitment to its founding vision of providing an alternative, pan-African worldview in media.
6. Technology and Market Changes: The company has struggled to capitalize on investments in equipment due to delays in the Nigerian government’s digitization policy. This, coupled with depreciation in the value of the equipment, has contributed to the financial losses. DAAR Communications aims to engage with regulators to push for developments that would benefit the broadcasting sector.
1. Restructuring Decision: The decision to retire 10 senior management members was described as overdue by Dokpesi Jr. He explained that many of these individuals had been with the company since its inception, with some serving for over 20 years. According to corporate governance rules, the maximum tenure for such positions should have been two terms of five years each. Therefore, the retirements should have occurred 5-6 years earlier.
2. Corporate Governance Compliance: The restructuring is seen as necessary to comply with corporate governance standards required for publicly listed companies. This move is intended to build investor confidence and help the company attract the capital needed to grow and expand.
3. Financial Challenges: DAAR Communications has been facing financial difficulties, with shareholder capital eroding over the years due to continuous losses. These issues have been flagged in past annual reports, and the company is now looking for ways to raise capital, either through equity or debt, to address these challenges.
4. Future Vision: Dokpesi Jr. emphasized the need for DAAR Communications to adapt and reposition itself in the Nigerian media industry. The company plans to embrace new strategies and technologies to continue being "the African voice" and recover from its financial difficulties.
5. Legacy of DAAR Communications: Despite the current challenges, Dokpesi Jr. highlighted the historical contributions of DAAR Communications, including its pioneering role in private broadcasting in Nigeria. He reaffirmed the company’s commitment to its founding vision of providing an alternative, pan-African worldview in media.
6. Technology and Market Changes: The company has struggled to capitalize on investments in equipment due to delays in the Nigerian government’s digitization policy. This, coupled with depreciation in the value of the equipment, has contributed to the financial losses. DAAR Communications aims to engage with regulators to push for developments that would benefit the broadcasting sector.