Inspiring CEOs
‘In March 2007, ten banks 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…’
Siaka MOMOH
Olufemi Peter Otedola was born November 4, 1962, into the family of the late Sir Michael Otedola, Governor of Lagos State from 1992 to 1993.
. This frontline Nigerian businessman and philanthropist chairman of Forte Oil PLC, is the current executive chairman of Geregu Power PLC.
Otedola founded Zenon Petroleum and Gas Ltd, and he is owner of a number of other businesses across shipping, real estate and finance. He has recently invested in power generation as part of the liberalization of the sector in Nigeria.
Fuel marketing
In 2003, Otedola secured 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, according to report, ten banks 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). Apart from diesel, Zenon also became an important player in the kerosene market. All over the country, Zenon became synonymous with cheap kerosene.
African Petroleum
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 capitalization 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 fuel at N50 per litre from more than 500 service stations across Nigeria!
In March 2009, Olufemi 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. Difficult economic conditions caused by the slump in world oil prices and credit squeeze of 2008–09 led African Petroleum to record a loss in 2009.
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.
And in 2013, as part of the Federal Government’s push to liberalize 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.
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). Revenue growth for the whole year was 33 per cent. In November 2014, Otedola returned to the Forbes rich list having dropped off it following the fall in share price during 2009.
In September 2015 Forte Oil sold 17 per cent of its equity to Swiss commodity trader Mercuria Energy Group, giving Forte access to global commodity markets. The deal was thought to have given Otedola an estimated $200 million. In 2019, Femi Otedola sold Forte Oil Plc and announced plans to change focus from oil to power with his company, Geregu Power Plc.
Other investments
These include establishment of CentreForce Ltd, which is specialized in finance, investments and trading. Only recently, this billionaire investor and chairman of FBN Holdings, consolidated himself as the largest shareholder in the financial services giant. He increased his stake in the company with the purchase of 534 million additional shares at N30 per share, bringing the total value of this latest acquisition to approximately N16 billion. This latest move increases Otedola’s total stake in FBN Holdings by 1.49%, taking his total shareholding to a commanding 13.16%.
This recent acquisition follows this billionaire business strategist’s previous purchase in July when he acquired 797,946,415 shares at an average price of N21,58 per share, a transaction valued at N17.2 billion.
Otedola is also the owner of Swift Insurance.
He is well grounded in shipping – Otedola is chief executive and president of SeaForce Shipping Company Ltd and was at a point Nigeria’s largest ship owner after extending control over the distribution of diesel products.
He is also big in real estate investments and philanthropy.
