Femi Otedola, a study in wealth accumulation   

Otedola knows when and how to make the right investment move  

The conventional way of walking to the top of the food chain in any society has always been; first to gain admission to a highly prestigious school, pursue a lucrative field of study like accounting or economics, set up your own business or work as a hedge fund manager or a contractor. And while at it, make sure you court friendship with politicians, especially if you’re in Nigeria. 

Those who follow these conventional paths to wealth accumulation, have always earned the most; those who don’t, most often titther in-between the base and the top of the food chain. 

In the case of the new board chairman of First Bank Holdings, Femi Otedola, his path to wealth didn’t strictly follow that conventional path. His education was less fanciful than his father’s, Sir Michael Otedola. While the senior Otedola was educated in London, the younger Otedola had his own in Nigeria at the Obafemi Awolowo University in Ile-Ife, Osun State. 

The senior Otedola worked at some of the most prestigious newspapers in the world – The Guardian and The Times of UK. He later returned to Nigeria early after Independence, took up an appointment as Information Officer in the Western Nigerian government before carving his niche in public relations and later became a politician. 

For Femi Otedola, he didn’t have any of his father’s career exposure. 

He grew up in an elite family, which of course is an encouraging start for a man determined to make ‘plenty’ money. It was said that at age 6, Otedola was doing casual stuff like carrying out manicures and pedicures for his parents’ guests who then would encourage him by paying stipend for the services.  Otedola would then scribble some stuff on paper and pass it to his ‘clients’ as a receipt.  

While In the university, Otedola was said to have been combining his studies with  helping to manage his father’s printing press, earning money along the way. 

 

Otedola was born on  November 4, 1962  in Ibadan, the capital of Oyo State. 

In 2003, having identified an opportunity in the fuel retail market, Otedola secured the finance to set up Zenon Petroleum and Gas Ltd, a petroleum products marketing and distribution company.

As owner and chairman of Zenon, in 2004, he invested N15 billion in downstream infrastructure development and acquired storage depots at Ibafon, Apapa as well as four cargo vessels, amounting to a combined total storage capacity of 147,000 metric tons. The same year he acquired a fleet of 100 DAF fuel-tanker trucks for N1.4 billion.

By 2005, Zenon controlled a major share of the Nigerian diesel market, supplying fuel to most of the major manufacturers in the country including Dangote Group, Cadbury, Coca-Cola, Nigerian Breweries, MTN, Unilever, Nestle and Guinness.

In March 2007, it was announced that ten banks had approved a syndicated loan of US$1.5 billion (N193.5 billion) to Zenon as working capital to build the largest premium motor spirit storage facility in Africa. Later that year Zenon acquired a 28.7 per cent stake in African Petroleum, one of Nigeria’s largest fuel marketers. Zenon also invested across the financial sector, becoming the largest shareholder in a number of Nigerian banks including Zenith Bank and United Bank for Africa (UBA). As well as diesel, Zenon also became an important player in the kerosene market.

In 2007, Otedola was appointed chairman and chief executive of Africa Petroleum through the acquisition of a controlling stake in the business. In December that year he personally acquired a further 29.3 per cent of the company for N40 billion. A merger of this personal holding with Zenon’s brought Otedola’s total stake to 55.3 per cent.

Following Otedola’s entry into the company African Petroleum’s share price rose sharply, increasing the market capitalisation from N36 billion to N217 billion in six months. 

In 2008, in response to public concerns over the availability and pricing of kerosene, African Petroleum launched an initiative to saturate the market and sell kerosene at N50 per litre from more than 500 service stations across Nigeria.

In March 2009, Otedola became the second Nigerian after Aliko Dangote to appear on the Forbes list of dollar-denominated billionaires, with an estimated net worth of $1.2 billion.

In October 2009, Otedola announced a move to upgrade African Petroleum’s liquefied petroleum gas (LPG) storage terminals in Lagos, Kano and Port Harcourt.

Forte Oil

In December 2010, African Petroleum rebranded, changing its name to Forte Oil PLC. Otedola carried out a restructuring of the business, focusing on technology and improved corporate governance. Forte Oil returned to profit in 2012.

In 2013, as part of the Federal Government’s push to liberalise Nigeria’s ailing power sector, Otedola financed 57% of Forte Oil subsidiary Amperion Ltd, which acquired the 414 MW Geregu Power Plant for $132 million.[28][29]

Forte’s improved financial position and diversification into power generation resulted in a 1,321 per cent rise in its share price during 2013.

The first half of 2014 saw the company’s pre-tax profit more than double year-on-year to 4.19 billion naira ($25.7 million). 

In October 2021, Otedola was announced as the single largest shareholder (5.07%) of First bank PLC. He became the chairman of the board on January 31, 2024.