Can you give us a brief introduction to Mezovest, including its history, mission, and core focus?

Our mission is centered around providing access to financial services and opportunities for the unbanked population, particularly in Nigeria. Mezovest initially focused on providing credit to the fast-moving consumer goods sector in Nigeria. However, recognizing the challenges faced by the unbanked and the high default rates, we shifted our focus to a more sector-specific approach, with a strong emphasis on the LPG sector.

What were the key criteria that led Mezovest to focus on the LPG sector?

Firstly, we sought a sector that was recession-proof and had a large total addressable market. LPG, being a consumer staple used for cooking, met these criteria. Additionally, we considered the government's support for the LPG sector, particularly in the context of Nigeria's transition to a gas-based economy. Finally, LPG offers a natural collateral in the form of gas cylinders, which retain their value even if they are empty, mitigating risks associated with credit offerings.

Could you elaborate on the "FIT" acronym and Mezovest's business model?

The "FIT" acronym represents Mezovest's business model, which revolves around Finance, Infrastructure, and Technology. In terms of finance, we aim to provide financial services to the unbanked population, leveraging our expertise in credit offerings. Infrastructure plays a crucial role in our model, as we engage in the LPG supply chain, including storage and distribution through subsidiaries like Mezovest Energy Trading Limited (METL). Finally, technology serves as a tool to enhance efficiency across our operations, particularly in areas like supply chain management and customer service.

Our goals are not limited to the energy sector but extend to creating markets and driving volume across various industries. By leveraging our expertise in LPG, we aim to expand into other verticals and apply our business model to different industries, ultimately driving demand and negotiating power for our clients.

How has the current economic landscape in Nigeria impacted the LPG market and the smaller players Mezovest works with?

The import-dependent nature of Nigeria's economy, coupled with currency fluctuations, presents significant challenges for the LPG market and smaller players within it, including those we collaborate with. The depreciation of the naira against the dollar results in heightened costs for importing goods, including LPG, exacerbating the financial strain on businesses. Moreover, the removal of subsidies and elevated fuel prices contribute to inflationary pressures, diminishing the purchasing power of consumers and enterprises operating in the LPG sector. Within this economic landscape, smaller LPG businesses encounter multifaceted hurdles. 

What is your assessment of the ‘Decade of Gas’ initiative, and how has it progressed since its inception?

The ‘Decade of Gas’ initiative is a promising endeavor by the Nigerian government to steer the country towards a gas-driven economy, capitalizing on its abundant gas reservoirs for sustainable growth and environmental preservation. However, as the initiative reaches its midpoint, some challenges necessitate immediate attention for its success. Key among these challenges is the need for infrastructure development, particularly in processing and distribution to harness the full potential of Nigeria's gas resources. Additionally, there is a pressing need for proactive measures to stimulate demand, underscored by the implementation of robust training and awareness programs. These initiatives are pivotal in fostering widespread acceptance and utilization of gas-based solutions across diverse sectors, ultimately propelling Nigeria towards its envisioned gas-centric future while reaping the associated socioeconomic benefits.

Can you outline Mezovest's immediate priorities for the coming years?

In the coming years, Mezovest's immediate priority is to expand into the CNG market, leveraging our LPG supply chain for gas-to-power initiatives. Partnering with the government, we aim to drive CNG adoption for vehicle and electricity generation through infrastructure development and demand stimulation.

Our long-term strategy involves establishing an ecosystem of finance, infrastructure, and technology across sectors. In finance, we envision offering digital banking services and broadening access to financial solutions. Infrastructure development, particularly in renewables, is crucial for sustainability, while technology solutions like IoT will enhance efficiency.

Mezovest aims to be a major player in finance, infrastructure, and technology within our ecosystem. We will provide digital banking services for enhanced financial inclusion, expand into renewables for sustainable energy, and utilize IoT for supply chain efficiency and customer service improvement.