Nigerian billionaire and investor, Femi Otedola, shares new insights into a pivotal moment in his energy business journey, revealing how a late-night negotiation led to the diversion of a diesel shipment originally meant for another buyer.
In an excerpt from his upcoming memoir scheduled for release in August, Otedola recounts a critical incident that unfolds during a fuel transfer operation. While managing logistics at a depot, he spots the Ocean Challenger, a diesel vessel belonging to Wale Tinubu, Group CEO of Oando Plc, anchored nearby and set to deliver fuel to one of Oando’s clients.
“At around 1 a.m., I contacted Oando’s operations staff to buy the cargo, but he declined,” Otedola writes. “I then called Wale directly and offered an extra N6 per litre. Without delay, he approved the discharge into my tanks.”
The cargo reportedly contains about 6 million litres of diesel. At a base rate of N30 per litre, approximately $1.8 million based on the N100/$1 exchange rate at the time, Otedola’s offer boosts the total value by an additional N36 million (or $360,000).
Referencing a line from The Godfather, he adds: “I made him an offer he couldn’t refuse.”
Otedola explains that his initial involvement in the diesel business is facilitated through government-linked allocations. However, when access to those channels ends, he shifts gears and approaches private suppliers instead.
In one decisive move, he offers $20 million to acquire an entire fuel depot that was initially valued at just $4 million, paying five times the asking price to secure steady supply. That deal sets the foundation for the establishment of Zenon Petroleum and Gas in 2003.
By his early 30s, Otedola becomes a major force in Nigeria’s oil trading scene. Zenon grows rapidly, capturing a large share of the diesel market and supplying major corporations across the country.
His bold tactics, including the Ocean Challenger deal, earn him the nickname “King of Diesel.”
Otedola later takes over African Petroleum, rebrands it as Forte Oil, and spearheads reforms that focus on diversification and corporate governance. He eventually exits the downstream oil business to invest in power and other emerging sectors.
His forthcoming book promises more behind-the-scenes stories of deals, risks, and pivotal decisions that define one of Nigeria’s most notable business careers.
