Success Stories
Femi Otedola: Nigeria’s Comeback Billionaire
Here is how Femi Otedola regained billionaire status and his place on the Forbes Billionaire list after years of falling in and out
Femi Otedola, a prominent Nigerian businessman has recently reclaimed his spot on Forbes Billionaire List as the 4th wealthiest billionaire in Nigeria. He first fell out of the Forbes billionaire list in 2016 due to a significant drop in the share price of his petroleum marketing company, Forte Oil. The company’s share price went from an all-time high of N342 ($1.1) in March 2016 to N145 ($0.44) per share by October 2016. Femi Otedola has once again risen to billionaire status due to his ownership of 70% of Geregu Power, a power generation business company. Here is how the Nigerian business icon regained his Billionaire status.
The beginning of the Otedola Business Empire
Olufemi Peter Otedola was born on 4 November 1962 to Lagos state Governor, Micheal Otedola(1992 to 1993) in ibadan oyo state. As a young man otedola learned and worked under his father, who owned a printing press becoming the company’s marketing man. In 1994, Femi Otedola started his first company, CentreForce Ltd, specializing in finance, investments, and trading. He also acquired Swift Insurance Brokers Ltd in 1955, gradually taking baby steps into the business society.
Otedola joined the African capitalist forces In 2003 when he founded “Zenon Petroleum and Gas Ltd.”, which quickly dominated the Nigerian diesel market. By 2004, Zenon had boomed to become the major supplier of diesel to major factories and industries and had a large market share in the diesel industry. Zenon supplied big companies such as Coca-Cola, Cadbury, Nigeria breweries, Nestle, etc.
In December 2007, he acquired a 29.3% share of African Petroleum for N40 billion and since he owned the major share, he was appointed as chairman and chief executive of the company. When Otedola’s share was combined with Zenon’s, his total share in African petroleum rose to 55.3% ( a controlling stake). As the chairman, of African Petroleum, the company’s share price rose sharply from N36 billion to N217 billion in six months.
In December 2010, Otedola carried out a major restructuring of the company which led to total rebranding: African Petroleum was renamed to “Forte Oil”. The restructuring was necessary because, in the previous year, the company experienced a significant loss. Later in 2013, Otedola acquired a 414 MW Geregu Power Plant for $132 million. In 2019, Otedola Sold Forte Oil and shifted his focus to power generation with Geregu Power Plc, in which he invested $1 billion.
Diversification and Investment
In 2006, Femi Otedola was appointed as a non-executive director of Transnational Corporation of Nigeria (Transcorp). transport is a multi-sectoral conglomerate created in 2004 by President Olusegun Obasanjo, to respond to market opportunities requiring heavy capital investment in Nigeria. Transcorp is involved in sectors like power generation, hospitality, and agribusiness.
Otedola was the director until 2011. In 2015, Otedola further diversified his portfolio by investing in First Bank of Nigeria(FBN) thereby solidifying his presence in the financial landscape. He became the single largest shareholder of First Bank Nigeria with a 7.7% share in 2021 but recently in 2023, he lost the position to Oba Otudeko of Honeywell Flour Mill, who acquired 13% of FBN. In August 2023, Otedola was appointed as Executive Director of First Bank of Nigeria.
Otedola On Forbes Billioniare List
Otedola’s presence on the Forbes Billionaire list has been a rollercoaster ride of Ups and Downs. In 2009, Otedola made his billion-dollar thereby making it to the Forbes list with a net worth of $1.2 billion. However, due to economic reasons, he dropped from the list temporarily in 2010. due to the 2010 loss, he restructured his company and changed its name to “forte Oil”; after which the company began to make a profit again. In 2012, he made the Forbes Billionaire list again
In 2016, Otedola fell off the list and this was Due to a decline in oil prices and challenges in his business ventures. His net worth moved from $1.8 Billion to $550 Million following a massive drop in the stock price of Forte Oil. According to Forbes, the share moved down to $0.44 from $1.1 per share. In 2024 after 7 years, he appeared in the Forbes billionaire list again as an African dollar billionaire.
Otedola’s Recognition and Philanthropy
In 2011, President Goodluck Jonathan appointed Femi Otedola as part of Nigeria’s National Economic Management Team. He was given national Honours as Commander of the Order of the Niger (CON) by President Goodluck Jonathan in 2010, recognizing his immense contributions to the growth of the Nigerian economy.
In terms of philanthropy, Otedola has made several donations to the Michael Otedola University Scholarship Scheme, which was established in 1985 to give underprivileged students in Lagos State access to higher education. In 2005 Zenon donated N200 million to the scheme’s fund. Since its inception, the scheme has benefited more than 1,000 students.
In 2005, Otedola made a N300 million personal donation to the completion of the National Ecumenical Centre—Nigeria’s primary place of Christian worship—in Abuja. He was also among a group of donors who gave N200 million to the State Security Trust Fund in a drive to reduce crime in Lagos State in 2007. He also donated N100 million to the Otedola College of Primary Education in the same year.
Femi Otedola’s fulfilled pledge of 25,000 dollars to the Super Eagles in the match against Algeria in the 2019 AFCON, won him the “African Philanthropist of the Year” by African Leadership magazine.