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Femi Otedola

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Femi Otedola
CON
Born
Olufemi Peter Otedola

(1962-11-04) 4 November 1962 (age 62)
Ibadan, Western Region, Nigeria (now Oyo State, Nigeria)
EducationOlivet Baptist High School
OccupationBusinessman
SpouseNana Otedola
Children4, including Florence "DJ Cuppy" Otedola,[1] Temi Otedola
ParentMichael Otedola

Olufemi Peter Otedola CON (born 4 November 1962) is a Nigerian businessman and philanthropist. He is the former chairman of Forte Oil PLC, and is the current executive chairman of Geregu Power PLC.

Otedola is also the founder of Zenon Petroleum and Gas Ltd, and the 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.[2]

Early life

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Otedola was born in Ibadan, the capital of Oyo State, southwest Nigeria, into the family of the late Sir Michael Otedola, Governor of Lagos State from 1992 to 1993.[3] He is ethnic Yoruba.[4]

Personal life

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Femi Otedola's first daughter, Tolani, is a singer. She was born to Otedola and his former wife, Olayinka Odukoya.[5] Later, Femi married Nana Otedola and had two more daughters—Florence Ifeoluwa and Elizabeth Temi—and a son, Fewa.[6] Florence Otedola, aka DJ Cuppy, is a DJ and music producer, as well as a tourism ambassador for Nigeria.[7] Her younger sister, Temi, is an actress, a style blogger and aspiring designer.[8] Otedola has homes in Lagos, Abuja, Dubai, London and New York City.[6][9]

Fuel marketing

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Zenon Petroleum and Gas

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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.[10]

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.[11][12] The same year he acquired a fleet of 100 DAF fuel-tanker trucks for N1.4 billion.[11]

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.[13]

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.[13][14] Later that year Zenon acquired a 28.7 per cent stake in African Petroleum, one of Nigeria's largest fuel marketers.[15] 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).[10] As well as diesel, Zenon also became an important player in the kerosene market.[16]

In 2012, Zenon was among a number of companies named in a report into an alleged fuel subsidy scam. According to the report Zenon owed the government $1.4 million.[17] It was further reported that Farouk Lawan, the Nigerian legislator who compiled the report, had apparently been filmed collecting $500,000 of a supposed total sum of $3 million from Femi Otedola to remove Zenon from the list.[18] It subsequently emerged that Otedola had previously reported Lawan's harassment and demands for bribes to the State Security Services, who had orchestrated a sting operation.[19] Lawan was charged with corruption in February 2013.[18]

African Petroleum

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In 2007, Otedola was appointed chairman and chief executive of Africa Petroleum through the acquisition of a controlling stake in the business.[20] 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.[21]

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.[16] 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.[22][23]

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.[24] In October 2009, Otedola announced a move to upgrade African Petroleum's liquefied petroleum gas (LPG) storage terminals in Lagos, Kano and Port Harcourt.[25] 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.[26]

Forte Oil

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In December 2010, African Petroleum rebranded, changing its name to Forte Oil PLC.[27] Otedola carried out a restructuring of the business, focusing on technology and improved corporate governance.[10][26] Forte Oil returned to profit in 2012.[26]

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.[26] 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).[30] Revenue growth for the whole year was 33 per cent.[31] In November 2014, Otedola returned to the Forbes rich list having dropped off it following the fall in share price during 2009.[10]

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.[32] In 2019, Femi Otedola sold Forte Oil Plc and announced plans to change focus from oil to power with his company, Geregu Power Plc.[33]

Other investments and positions

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In 1994, Otedola established CentreForce Ltd, specialising in finance, investments and trading.[34] Otedola is also the owner of Swift Insurance.[35]

Otedola is chief executive and president of SeaForce Shipping Company Ltd and was at one point Nigeria's largest ship owner after extending control over the distribution of diesel products.[34][36] One of his ships, a flat bottomed bunker vessel with a storage capacity of 16,000 metric tonnes, was the first of its kind in Africa.[13]

In January 2006, Otedola was appointed a non-executive director of Transnational Corporation of Nigeria Plc, a multi-sectoral conglomerate established in 2004 by then-President Olusegun Obasanjo to respond to market opportunities requiring heavy capital investment in Nigeria and across sub-Saharan Africa. He held this post until February 2011.[34][37][38]

Otedola has made a number of real estate investments, including a N2.3 billion acquisition in February 2007 by Zenon of Stallion House in Victoria Island in Lagos, from the Federal Government.[39] The following month he was appointed chairman of the Transcorp Hilton Hotel in Abuja and tasked with driving its expansion and upgrade to a seven star facility.[40] He is the owner of FO Properties Ltd.[13] Otedola has been reported to be a financier of the People's Democratic Party and is said to have contributed N100 million to President Obasanjo's re-election expenses in 2003.[13][18] He was a close ally of President Goodluck Jonathan.[18] He has served as a member of the Nigerian Investment Promotion Council (NIPC) since 2004, and the same year was appointed to a committee tasked with developing commercial relations with South Africa.[41] In 2011, Femi Otedola was appointed by President Goodluck Jonathan to Nigeria's National Economic Management Team.[42]

In 2020, Forte Oil rebranded to Adrova PLC.

As at October 2021, he was announced as the single largest shareholder (5.07%) of First bank PLC.[43]

Controversy

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Bribery and corruption

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In 2012,[44] Femi Otedola was reported by reliable media houses[45] to have given bribe to Boniface Emenalo and Farouk Lawan who was at then, the Chairman of the House Committee on Fuel Subsidy Regime, "integrity group" a sum of $620,000.[46] The reason reported by witnesses as pertains the actions of Femi Otedola was that he wanted the name of his company removed from the list of firms indicted by Farouq Lawan's committee for abusing the fuel subsidy regime in 2012 .[47] Farouk Lawan and Boniface Emenalo were at risk of going to prison if found guilty of receiving money from Femi Otedola as receiving of bribe by a government official is an offense punishable by Imprisonment. On 2 February 2013, Both individuals Farouk Lawan and Boniface Emenalo were charged to court by Independent Corrupt Practices and other related Commission (ICPC) their trial was at the Capital Territory High Court in Abuja to face a seven-count charge of bribery, an offense that violates Section 10 (a) (ii) of ICPC Act, 2000 and punishable under Section 10 of that same Act.

Farouk Lawan plead not guilty, and initially so did Boniface Emenalo; however, events at the court of law took an unforeseen turn as Boniface Emenalo eventually admitted he was guilty[48] and, in fact, had received several bribes on behalf of Farouk Lawan. Be that as it may, new evidence provided by the persecution was very concrete as Femi Otedola was caught red-handed in a video of him giving a bribe and Farouk Lawan accepting it.[49][50][51]

Canadian Escorts

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In December 2016, Otedola was embroiled in a controversy where two Toronto-based sisters—Jyoti and Kiran Matharoo—reportedly tried to extort him by cyberbullying and blackmail, claiming they had evidence of Otedola cheating on his wife that they would post on a notorious sex-scandal website.[52] The sisters dispute Otedola's account.[53] According to their account Jyoti met Otedola, straight out of University, in 2008. He whisked her and Kiran to Nigeria, and began an affair with him. They acknowledge that his gifts enriched them, as did gifts from other wealthy boyfriends, but dispute they ever engaged in blackmail, or even demanding gifts.

Philanthropy

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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.[54] In 2005 Zenon donated N200 million to the scheme's fund.[55] Since its inception the scheme has benefited more than 1,000 students.[54]

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.[56] In 2007 he was among a group of donors who gave N200 million to the State Security Trust Fund in a drive to reduce crime in Lagos State.[57] Later that year he donated N100 million to the Otedola College of Primary Education in Noforija, Epe.[58] In 2008 he donated N80 million to the Faculty of Agriculture at the University of Port Harcourt.[59] Femi Otedola fulfilled his pledge of 25,000 dollars to the Super Eagles in the match against Algeria in the 2019 AFCON[60]

References

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  1. ^ Ikeji, Linda (2 June 2016). "Photos: Femi Otedola's son, Fewa celebrates his birthday today". Ikeji, Linda.
  2. ^ "Femi Otedola, Entrepreneur, Businessman, Nigeria Personality Profiles". www.nigeriagalleria.com. Retrieved 5 March 2022.
  3. ^ "Ex-Lagos gov, Sir Michael Otedola, dies at 87". Vanguard. 6 March 2014. Retrieved 3 September 2015.
  4. ^ BellaNaija.com (2 August 2019). "Femi Otedola celebrates his "Iyawo" Nana Otedola on her Birthday". BellaNaija. Retrieved 23 January 2024.
  5. ^ "Billionaire Femi Otedola in Trouble With 26 Yr-Old Love Child's Mum, Past Now Haunting Him". Nigeria Films. Retrieved 18 February 2019.
  6. ^ a b "Billionaire mogul Femi Otedola: Why There's No Noise About His Upcoming 50th Birthday?". Daily Mail (Nigeria). 6 November 2014. Archived from the original on 24 December 2015. Retrieved 30 October 2015.
  7. ^ "I'm passionate about work, Nigeria, says DJ Cuppy". Vanguard. 23 August 2015. Retrieved 30 October 2015.
  8. ^ Jarvis, Alice-Azania (12 June 2015). "Rich, urbane and entrepreneurial: meet Africa's new super-rich with a taste for the London lifestyle". Evening Standard. Retrieved 30 October 2015.
  9. ^ "Ikorodu Bois don enta Nigerian billionaire daughters Ferrari Portofino mata". BBC News Pidgin. 16 September 2020. Retrieved 20 January 2021.
  10. ^ a b c d Owolawi, Abisola; Ogunlesi, Tolu (November 2014). "You can lose it all tomorrow". Forbes Africa.
  11. ^ a b Momodu, Shaka (25 December 2004). "2007: Will Femi Otedola Run?". This Day. Retrieved 3 September 2015.
  12. ^ Obike, Uche (12 March 2007). "10 Banks Give Zenon $1.5 BIllion". Africa News Service. Archived from the original on 24 December 2015. Retrieved 3 September 2015.
  13. ^ a b c d e "Nigeria's mega businessmen". Online Nigeria. Retrieved 3 September 2015.
  14. ^ Modibbo Kawu, Is'haq (15 March 2007). "Points We Must Ponder". Daily Trust. Retrieved 3 September 2015.
  15. ^ "Nigeria's Zenon buys African Petroleum stake". Reuters. 4 May 2007. Archived from the original on 24 December 2015. Retrieved 3 September 2015.
  16. ^ a b "AP, Zenon Petroleum Set to Merge". Proshare. 15 January 2008. Retrieved 3 September 2015.
  17. ^ "Nigeria suspends subsidy probe head on bribe claim". Reuters Africa. 15 June 2012. Archived from the original on 24 December 2015. Retrieved 23 September 2015.
  18. ^ a b c d "Nigerian Farouk Lawan charged over $3m fuel scam 'bribe'". BBC. 1 February 2013. Retrieved 23 September 2015.
  19. ^ "U.S.$3Million Subsidy Scandal – Why Farouk Lawan Will Go Down Alone". Vanguard. 21 July 2012. Retrieved 23 September 2015.
  20. ^ Ugeh, Patrick (13 September 2007). "AP Appoints Otedola CEO, Sacks MD". This Day. Retrieved 25 September 2015.
  21. ^ Ekah, Mary (11 December 2007). "Otedola Acquires 55.3 Percent Shares in AP". This Day. Retrieved 25 September 2015.
  22. ^ Taiwo, Juliana (21 June 2008). "AP Sells Kerosene at N50/Litre". This Day. Retrieved 25 September 2015.
  23. ^ Bajulaiye, Olumide (14 October 2008). "AP's N50 Per Litre Kerosene Returns". Daily Trust. Retrieved 25 September 2015.
  24. ^ Maduabuchi, Emma (18 March 2009). "Otedola in World Billionaires' Club". Daily Independent. Retrieved 25 September 2015.
  25. ^ Shosanya, Mohammed (22 October 2009). "AP to Import 10,000 Tons of Transparent Gas Cylinders". Daily Trust. Retrieved 25 September 2015.
  26. ^ a b c d Egene, Goddy (27 November 2013). "Forte Oil Comes in From the Cold". This Day. Archived from the original on 18 February 2014. Retrieved 25 September 2015.
  27. ^ "African Petroleum Re-Brands, Now Forte Oil PLC". This Day. 29 December 2010. Retrieved 14 October 2015.
  28. ^ Echewofun Sunday, Simon (6 October 2013). "Privatisation – Powers Behind the New Power Companies". Daily Trust. Retrieved 14 October 2015.
  29. ^ "Nigeria's Forte Oil surges to 11 times price at start of year". Reuters. 8 November 2013. Archived from the original on 24 December 2015. Retrieved 14 October 2015.
  30. ^ "Nigeria's Forte Oil doubles H1 profit on power generation". Reuters. 8 August 2014. Archived from the original on 24 December 2015. Retrieved 14 October 2015.
  31. ^ Nssien, Andy (22 April 2015). "Forte Oil galvanizing operations". Daily Independent.
  32. ^ "Forte Oil sells 17% Equity to Mercuria Energy Group, receives regulatory approvals". Proshare. 24 September 2015. Retrieved 14 October 2015.
  33. ^ Nairametrics.com. Retrieved 7 August 2019.
  34. ^ a b c "Bloomberg Business Profile: Femi Otedola". Bloomberg Business. Bloomberg. Retrieved 15 August 2015.
  35. ^ Maduabuchi, Emma (1 December 2008). "Femi Otedola's Heart of Gold". Daily Independent. Retrieved 15 August 2015.
  36. ^ "Femi Otedola biography, CEO Zenon Oil, business mogul". RecordsNG. Archived from the original on 31 August 2015. Retrieved 15 August 2015.
  37. ^ Amuchie, Max (24 March 2006). "Transcorp: an Idea Whose Time is Overdue". This Day. Retrieved 15 August 2015.
  38. ^ "Transcorp: Obasanjo's shares in blind trust". Proshare. 9 August 2006. Retrieved 15 August 2015.
  39. ^ Onwuchekwa, Okey (26 February 2007). "BPE D-G Commends Zenon Petroleum". Daily Champion. Retrieved 15 August 2015.
  40. ^ "Otedola Now Transcorp Hilton Chairman". This Day. 10 March 2007. Retrieved 15 August 2015.
  41. ^ Awogbemi, Abiodun (11 October 2014). "Pillars of Nigeria's economy". Newswatch Times. Archived from the original on 24 December 2015. Retrieved 15 August 2015.
  42. ^ Ogbu, Ahamefula (9 September 2011). "Ovia, Otteh, Otedola Join Economic Team". This Day. Archived from the original on 27 April 2012. Retrieved 15 August 2015.
  43. ^ "Otedola acquires First Bank's 5 per cent, emerges majority shareholder". Fellow Press. 23 October 2021. Archived from the original on 23 October 2021. Retrieved 23 October 2021.
  44. ^ "Trial of Farouk Lawan, Emenalo over $620,000 Femi Otedola bribe commences". Daily Post Nigeria. 1 February 2016. Retrieved 27 February 2017.
  45. ^ "Nigerian Farouk Lawan charged over $3m fuel scam 'bribe'". BBC News. 1 February 2013. Retrieved 27 February 2017.
  46. ^ "How did the Farouk/Otedola saga end? – Vanguard News". Vanguard News. 7 August 2012. Retrieved 26 February 2017.
  47. ^ "Trial of Farouk Lawan, Emenalo over $620,000 Femi Otedola bribe commences". Daily Post Nigeria. 1 February 2016. Retrieved 26 February 2017.
  48. ^ "Fresh facts emerge on Farouk/Otedola bribery scandal – Vanguard News". Vanguard News. 3 July 2012. Retrieved 27 February 2017.
  49. ^ Madameaproko.com (14 July 2013), Farouk Lawan $3 million Bribe Video EXposed, archived from the original on 20 December 2021, retrieved 27 February 2017
  50. ^ "I accepted Otedola's $100,000 bribe to nail him, Emenalo tells court". TheNigerianVoice.com. Retrieved 27 February 2017.
  51. ^ "$3m Subsidy bribe scandal: I won't talk in secret, Otedola tells Reps". Vanguard News. 4 July 2012. Retrieved 27 February 2017.
  52. ^ "Toronto sisters arrested for allegedly cyberbullying and extorting Nigerian billionaire". Toronto Star. Retrieved 26 December 2016.
  53. ^ Levin, Dan (10 November 2018). "How to Date a Lot of Billionaires". The New York Times. p. ST1. Archived from the original on 13 November 2018. This affair was not to be a forever love, though. Over the years, the sisters globe-trotted with a succession of paramours. In particular, both sisters traveled frequently to Nigeria and said that dating wealthy men there was easy. 'Once they find out you have a sister, it's over,' Kiran said. 'We don't find them. They find us.'
  54. ^ a b Ogunmosunle, Sola (22 May 2014). "Tribute to Sir Michael Otedola". Sun News. Archived from the original on 24 December 2015. Retrieved 30 October 2015.
  55. ^ Oduwole, Funke (4 April 2005). "Zenon Donates N200m to Otedola Scholarship Scheme". Retrieved 30 October 2015.
  56. ^ Lohor, Josephine (10 October 2005). "Otedola Donates Additional N300m to Ecumenical Centre". This Day. Retrieved 30 October 2015.
  57. ^ Elumoye, Deji (28 November 2007). "Dangote, Otedola Boost Lagos Security Fund With N200m". This Day. Retrieved 30 October 2015.
  58. ^ "Otedola Donates N100m to College". This Day. 3 December 2007. Retrieved 30 October 2015.
  59. ^ Ogbu, Ahamefula (20 April 2008). "Otedola Tops Donors at Uniport Convocation". This Day. Retrieved 30 October 2015.
  60. ^ "AFCON 2019: Otedola fulfils $25,000 pledge to Super Eagles". 30 July 2019.
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