Femi Otedola: When a Philanthropist Becomes Chancellor

By Eric Elezuo

It was a rain of naira as billionaire businessman, Mr. Femi Otedola, was installed as the Chancellor of Augustine University, Epe, Lagos State.

The newly inaugurated Chancellor, who is not new to philanthropism and welfare of the people instantenously announced the scholarship donation to each student enrolled in the institution for the 2023/2024 academic session, including new and returning students.

In an unprecedented move, the man of thr people, investor and major shareholder and Chairman of Geregu Power, as well as director of FBN Holdings Plc, extended his philanthropic arm by donating a generous sum of N1 million to each of the 750 students of Augustine University.

The total sum of the scholarship donation amounts to N750 million (Seven Hundred and Fifty Million Naira). In a addition, the silent boosted the furnishing of the Engineering Faculty with a N140 million donation, and another N110 million for street lights across the campus. He therefore, made a whopping N1 billion donation to the institution. The Geregu chairman had earlier committed N2 billion for the building of the Engineering Faculty.

Making the donations during his acceptance speech at the university, where he outlined his vision and commitment to the educational institution and its student body, Otedola informed that the substantial financial aid is meant to alleviate the burden on families affected by Nigeria’s present challenging economic climate.

“I  hereby announce a scholarship donation to Each returning student of the University and Each new first year student of our University the amount of  One Million Naira Each towards the 2023 / 2024 session school fees of Each student. I am told that there are 500 returning students and about 250 new first year students making a total Scholarship donation of N 750 Million (Seven Hundred and Fifty Million  Naira).  I hope this donation assists the plight of the parents of our students in this difficult time.

“I also donate N140 million towards the furnishing of the completed Engineering faculty building and a further N110 million towards the installation of Street lights around the campus and a new standby generating set. THIS MAKES A TOTAL DONATION OF ONE BILLION NAIRA TO OUR UNIVERSITY. This is in addition to my earlier pledge of N2 billion for the construction of the Engineering Faculty complex,” the billionaire businessman said.

The donations are considered historic, and a new precedent for private philanthropy in the academic sector.

Call him the simplest and most easy going Nigerian billionaire, you won’t be wrong. The likes of Femi Otedola, as he is simply referred, to, are rare. Some schools of thoughts believe his likes are even extinct. He is an enigma and a worthy philanthropist, even to a fault. His stupendous flow of human touch and attachment to people and humanity are his greatest endearment. He even went a notch ahead when he against all odds acquired 5.5 per cent shares at the prestigious Transcorp Plc, a conglomerate that accommodates the best of business concerns in the country, dishing out unquantified services to mankind. He therefore, becomes the second largest shareholder of the company.

It is also worth noting that Otedola is the chairman of Geregu Power, a company that went public in the third quarter of 2022, and owns 2.388 billion worth of shares indirectly through Amperion Power Distribution Limited, which is 95.56 percent of the company’s total ordinary shares of 2.50 billion, according to data from the NGX website. His business networking is admirable, and that has placed him on the pedestal of Nigeria and Africa’s business greats.

Otedola, early in 2022, also acquired significant control of FBN Holdings when he announced he had acquired shareholdings above the 5 percent threshold, a development that triggered a bidding contest for stocks. He is a game changer.

In addition to his network of gigantic strides, the billionaire businessman was appointed as a Vice President of popular UK-based charity, Save The Children, a position that further portrayed his philanthropic worldview.

“I am elated to be associated with the organisation. We have to save our children from all manner of challenges and deprivations. And giving to the needy, particularly children, is the greatest love of all,” the father of four said excitedly.

According to a statement by the organisation, “Save the Children’s vice presidents are a group of high-level supporters and critical friends of the organisation, actively involved in advancing the work of Save the Children, through advocacy, volunteerism, introductions, and philanthropy..

“Mr. Femi Otedola’s addition to the vice presidents group is a testament to his long-standing support to the organisation. Since 2019, Mr. Femi Otedola has supported Save the Children’s programmes on prevention and treatment of malnutrition and on advocating access to quality education for Nigerian children, impacting over 6000 children in Adamawa, Borno, and Katsina States.
“In November 2019, Mr. Otedola hosted a gala in Abuja where he made a personal donation of N5 billion,” the statement explained, adding that Otedola’s global influence and rich experience of the African continent would advance Save the Children’s efforts in building sustainable partnerships with stakeholders across Africa to create more impact for children on the continent.

To some, it is still a mystery how the son of a prolific politician, who rose to become the governor of Lagos State, did not dabble into politics as is the standard in his clime. However, one thing is clear, and that is the fact that the billionaire businessman, simply addressed as Femi Otedola (CON), is a focused and determined man. He made his choice from day one, and has refused to be derailed. This explains his prolific nature in the world of entrepreneurship, which has directed his life.

But one thing is very obvious before all and sundry, and that is the fact that the dotting father of four adorable children is really an Epicurus son, and has no place for half measures when it comes to giving himself, and of course everyone around him the good life. It was no surprise therefore, when the philanthropist lavished a whopping Three Million Pounds to rent a cruise boat in celebration of his 60th birthday in 2022.

Born on November 4, 1962, in Ibadan to the family of the late Sir Michael Otedola, a former governor of Lagos State, Otedola is a definition of everything good, positive and encouraging. He has lived his life representing the very essence of living, affecting lives as a philanthropist, developing careers and manpower as a businessman, industrialists and entrepreneur, and raising biological children, who has stood their own in the society. There is hardly anywhere this tall, handsome phenomenon of a personality can be faulted.

The billionaire businessman started his education at the University of Lagos Staff School before attending Olivet Baptist High School from where he was admitted into the university. 

A former chairman of Forte Oil Plc, the Chancellor of St Augustine University, Epe, Lagos, is 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 liberalisation of the sector in Nigeria.

He never leaves anything to chance, and so used his 60th birthday to fulfill a childhood fantasy and lifelong ambition of cruising on the most expensive boat in the world, the Christina Onassis. The yacht is owned by late Greek billionaire, Aristotle Onassis. He had adopted the Greek Shipping guru, as his role model since he was 13. It was a dream come true.

The man, who has homes in Lagos, Abuja, Dubai, London and New York City has a much impressive existence since he set out to take the bull by the horns in the field of enterprise. This is as chronicled by wikipedia.

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.

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 tonnes. The same year he acquired a fleet of 100 DAF fuel-tanker trucks for N1.4 billion.

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.

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. Later that year Zenon acquired a 28.7 per cent stake in African Petroleum, one of Nigeria’s largest fuel marketers. 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). As well as diesel, Zenon also became an important player in the kerosene market.

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. 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. 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. Lawan was charged with corruption in February 2013.

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

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. 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.

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

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

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.

Forte’s improved financial position and diversification into power generation resulted in a 1,321 per cent rise in its share price during 2013. 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). Revenue growth for the whole year was 33 per cent. In November 2014, Otedola returned to the Forbes rich list having dropped off it following the fall in share price during 2009.

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

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

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. 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.

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.

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. 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. He is the owner of FO Properties Ltd. 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. 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. In 2011, Femi Otedola was appointed by President Goodluck Jonathan to Nigeria’s National Economic Management Team.

In 2020, Forte Oil rebranded to Adrova PLC.

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

His philanthropic gestures have remained a reference point to other wealthy individuals. He is known to have 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. In 2005 Zenon donated N200 million to the scheme’s fund. Since its inception the scheme has benefited more than 1,000 students.

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. 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. Later that year he donated N100 million to the Otedola College of Primary Education in Noforija, Epe. In 2008 he donated N80 million to the Faculty of Agriculture at the University of Port Harcourt. He also promised and fulfilled his pledge of 25,000 dollars to the Super Eagles in the match against Algeria in the 2019 AFCON.

In September, 2022, Otedola was appointed as a member of the National Peace Committee (NPC), headed by former Head of State, Abdulsalam Abubakar, ahead of the 2023 elections.

Highly blessed of God, Otedola, who holds a National Honour of the Commander of the Niger (CON), owns a private jet and a few of his caravan of cars include Mercedes Benz AMG G63 worth N73 million; G–wagon costing N53 million; Mercedes SLR McLaren worth N250 million; Rolls–Royce Phantom worth N162 million and BMW 6 series worth N30 million. In the recent past, he gifted his three daughters with a costly Ferrari sport cars.

An unrepentant dotting father, husband and family man, Otedola is married to Nana, and has three daughters and one son. They are Tolani, a singer, Florence Ifeoluwa and Elizabeth Temi, and a son, Fewa. Florence Otedola, aka DJ Cuppy, is a Disc Jockey and music producer, as well as a tourism ambassador for Nigeria while Temi is an actress, a style blogger and aspiring designer.