Suave billionaire mogul, Femi Otedola, is a smart man. Those who know the amiable businessman from his youthful days on the streets of Surulere and Ikeja in Lagos would tell you that he looks out for yawning gap and moves to fill it. Or what would one say of a minor (aged 6) already cutting deals and issuing receipts as a nail groomer? That’s the trait Otedola pushed to become a mega businessman today. When in 2003, Otedola saw an opportunity he could grab in the oil business, he dumped the family printing business he was superintending and set up Zenon Oil to invest in the downstream infrastructure development and within few years, he became the market leader in the niche diesel market. With increased income from his oil business, Otedola grew his investments and even strayed into banking with substantial shares in Zenith Bank Plc and UBA Plc. However, as the trouble in the global oil business became predictable, the Epe-born magnate started to divest and look for new opportunities. This came to a climax last week when, on his verified Instagram handle, he claimed to have exited the downstream and upstream sub-sectors of the oil and gas industry, and added that his next investment focus will be on Nigeria’s power generation business. While the businessman refused to disclose what actually drove him out of the business that earned him a Forbes rating at a point, Spotlight gathered that by migrating from the oil business, Otedola made a bold statement concerning his interpretation of the changing local business environment where the power sector is likely to appear more sustainable and profitable.
Sources said his decision to quit the downstream sector of the Nigeria oil industry to refocus on his investment on power generation is consistent with his understanding that there will be a general shift in incomes once his close friend, Alhaji Aliko Dangote’s refinery and fertilizer plants in Lagos become operational next year. Experts have predicted that the Dangote refinery may squash margins further for oil retailers as petroleum subsidy benefits will eventually virtually disappear. And with the absence of government subsidy in white oil products such as PMS and DPK, this would make downstream oil operations precarious. The upstream operations will equally not be without its problems of falling global oil demand and persistent oversupply threats from Shale Oil producers; the higher the price of crude oil in international markets, the more the commissioning of new rigs and growing production from marginal fields. All these are factors said to have pushed the billionaire to act fast. Of course, since he announced his exit and his new interest, he has been balling. The dude has embarked on another six weeks vacation. Some trusted staffers and top aides of the large-hearted Otedola are still with him. For one, Akin Akinfenwa who joined Forte Oil from Otedola’s London office in 2010 and immediate past CEO of the company, is still standing by him in the new power venture, the billionaire is pumping close to $1 billion into. The mogul – who enjoys adorning white brocade buba and sokoto as official garb, topped with agbada and cap for social events in Nigeria, and luxe and elegant Tom Ford pieces like suits, sweaters and jackets, while abroad – will still operate from his showplace office on Walter Carrington on Victoria Island, Lagos. However one sees it, as it concerns Nigeria business climate, all plans are going the way of Otedola and his buddy, Dangote, as the economy will be standing on a two pole plug –Dangote (Oil) and Otedola (Power).