Femi Otedola’s Billion-Dollar Loss: The Real Story Behind His Financial Crisis
- Femi Otedola revealed in his upcoming biography how banks once used 'bewitching ladies' to secure loans and deposits from him during his business peak
- He explained how a combination of factors, including the drop in oil prices and the devaluation of the naira, left him heavily indebted, losing millions of dollars
- Despite once being the banks' darling, Otedola faced severe financial difficulties, including a disastrous diesel shipment and high dollar liabilities
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Billionaire Femi Otedola has disclosed how, during the height of his business empire, banks used 'bewitching ladies' to secure his loans and deposits.
Source: Getty Images
In passages from the book seen by TheCable, the oil magnate explained how a succession of financial problems, including the global drop in crude oil prices and the devaluation of the naira, left his enterprises heavily indebted and under enormous pressure.
“All told, I lost more than USD480 million to the plunge in oil prices, USD258 million through the devaluation of the naira, USD320 million because of accruing interest, and another USD160 million when the stocks crashed.”
“It was devastating, like a terrible nightmare, but a nightmare would have been better: day would break, and I would wake up. There was no waking up from this,” Otedola wrote.
He described how his fortunes drastically changed, saying, "At one point, I was the banks' darling, and they did everything in their power to court me, do business with me, give me loans, and take deposits from me."
“They would send bewitching ladies to make their offers more convincing, and now I was waking up to the sight of hefty, barrel-chested men standing menacingly in front of my gate, waiting for the moment I’d step out of my compound.”
When Otedola founded Zenon Petroleum, it expanded from selling diesel in drums to controlling the largest portion of the local market, marking his entry into Nigeria's business elite.
Additionally, he bought African Petroleum in the downstream sector and changed its name to Forte Oil Plc, making it one of the best-performing stocks at the time.
But in 2008, when crude oil was worth $147 per barrel, he ordered a shipment of diesel which didn't arrive until the price had plummeted to $40, leaving him deeply indebted.
Meanwhile, the naira depreciated from N120 to N167 in 2009 due to a decline in foreign exchange inflow, which left Otedola with two problems: low diesel prices and high dollar liabilities.
Source: UGC
Femi Otedola shares secret to becoming a successful
Legit.ng reported that Femi Otedola, billionaire businessman and chairman of First Holdings Plc, says he will soon share key lessons from his entrepreneurial journey to inspire Nigeria’s next generation of business leaders.
In a post shared on X on Wednesday, Otedola reflected on how Nigeria’s business environment has transformed over the past decade, crediting the shift to resilience and hard-won experience.
“Over the past decade, doors have opened for entrepreneurs in Nigeria that once seemed firmly shut. This transformation didn’t happen overnight,” he posted.
Source: Legit.ng
