Plenty of ink must have been spilled on the phenomenal return and rise of energy tycoon, Femi Otedola into the exclusive list of the world’s super-wealthy. After much speculation, the billionaire investor recently emerged as a standout figure to reclaim his coveted position among the world’s billionaires when Forbes unveiled its 38th Annual World’s Billionaires List. With a total wealth of $1.7billion, Forbes ranked Otedola as the 20th richest person in Africa —making him the fourth richest Nigerian after a seven-year hiatus and solidifying his status as a formidable force in the global billionaire landscape.
In recent times, the billionaire has emerged stronger on some measures of business fundamentals. Fuelling his ascent to Forbes’ world wealthiest status is his diverse asset portfolio, characterised by offshore cash reserves, extensive international real estate holdings, and strategic investments in some of Nigeria’s most profitable business entities. Otedola stepped up public activity after he broke years of discreteness to issue a ‘call to arms’ to everyone as he orchestrated a strategic reinvention of his investment portfolio by emerging a key figure in Nigeria’s financial sector through his holdings in both FBN Holdings Plc and Zenith Bank Plc.
In 2021, Otedola acquired huge volumes of the shares of FBN Holdings —the parent company of First Bank, Nigeria’s oldest commercial bank— in piecemeal via a series of off-market trades to become the biggest shareholder of the financial services group.
Not done yet, Otedola also racked up shares worth N6 billion of Dangote Cement Plc —the sub-Saharan Africa’s largest cement maker controlled by Africa’s richest person, Aliko Dangote who owns 85.8 per cent of the company’s shares. It is worthy of note that Dangote Cement recently leapfrogged telecommunications powerhouse Airtel Africa to become Nigeria’s biggest company by market capitalisation, currently valued at N8.35 trillion. So, one can understands Otedola’s interest and decision.
In June 2019, Otedola created what could possibly pass as one of the biggest ever corporate takedowns when he decided to divest his shareholdings in Forte Oil and sell them to the Ignite Consortium led by oil magnate Abdulwasiu Sowami’s Prudent Energy Services Limited. The fallout from that decision lingered for a while as many were not convinced it was a right move. But unknown to some, Otedola has always acted —albeit stealthily— on most of his investment decisions as if he has a charter passed down to him like a family heirloom. That move seems to have been a blessing in disguise for the 61 year-old Epe-born billionaire as it marked his axle into the real energy sector with more investment in his power-generating firm —Geregu Power Plc— which was to prove a pivotal moment in his resurgence. Otedola holds the majority stake in the company, whose market value currently stands at N1.2 trillion with investors, including the Nigerian Government, AFREXIM and the State Grid Corporation of China. His 73 per cent stake in Geregu Power is worth more than $850million; over three-quarters of his entire fortune.