How Positivity Drove Energy Billionaire Femi Otedola To Making It Big

Billionaire energy and finance entrepreneur Femi Otedola believes a positive mindset is the key to his success.

Office of Femi Otedola

A positive mindset, self-confidence and having the courage of conviction to recognize the right opportunity are the three key pillars for investing successfully and upscaling a business, according to Femi Otedola, one of Africa’s most notable energy and finance entrepreneurs.

In an exclusive interview, the Nigerian billionaire and philanthropist who regularly features on Forbes rich lists, said these beliefs not only continue to define his current approach but have also kept him “sane” and lifted him from the “depths of despair” whenever fortune took a turn for the worse.

The 62 year-old Otedola, who has current net worth of $1.5 billion, told your correspondent, he was always a “restless soul” at school who believed his true calling was not in academia but in business.

“I dreamt of my first business before I was ten years old and made my first billion by the age of 41. During those decades were years of toil, thrills, successes, and yes, painful failures too.”

His colorful journey spanned from working in his father’s printing press as a young man to an initial foray into the energy and finance – key sectors of the resource-rich Nigerian economy. Via series of targeted investments, Otedola ultimately built his fortune in the commodities business. The high point of this was his stewardship of Forte Oil Plc.

The company, under Otedola’s ownership, saw a turn around in fortunes both via organic growth as well as mergers. Ultimately, it became a true downstream disruptor in Nigeria by deploying agile procurement techniques to secure and distribute a wide range of petroleum products from diesel and aviation fuel, to kerosene and lubricants.

He eventually sold the company for a handsome profit in 2019. “It is an approach I have taken to many of my business ventures. I buy a struggling company, leave no stone unturned in reversing its fortunes and then sell it on to move to my next challenge. I wouldn’t say its flipping an asset in a classic sense.

“My idea is to reshape a company’s fortunes and leave it for next owner with a legacy of success and a long-term future. Forte Oil Plc – at the time of its sale – was one of the highest performing companies on the Nigerian Stock Exchange.”

Otedola’s colourful journey and his entrepreneurial approach is vividly charted in his recently published part business book, part memoir Making it big: Lessons from a life in business, currently featured on the Amazon finance and business bestsellers list.

“I’m at a stage in my life where I felt I ought to share my learnings, investment philosophy and belief in the power of positive thinking with the next generation of entrepreneurs, as they embark on their own journey.”

Otedola’s journey has taken him well beyond core holdings in energy and finance, to portfolio of holdings in insurance, real estate and shipping. He is the single-largest shareholder of First Bank Plc, and is the executive chairman of Geregu Power Plc, an electricity company in Nigeria which he has majority ownership of.

Future Horizons

So, what’s behind the switch from being the petroleum products king in Nigeria to a power czar? “Because the future is electric and I believe in the energy transition. However, I am also a pragmatist who believes that oil and gas will continue to play a part of the global energy mix for at least another three decades.

“We will see shifts in crude oil demand to petrochemicals and aviation. Meanwhile, a rapidly digitizing global economy will need more and more electricity, which cannot be serviced yet by renewables alone. We will need nuclear, we will need natural gas too. An emerging, promising market like Nigeria, and vibrant continent like Africa cannot lose sight of this.”

Otedola also added that if global forecasters view the continent of Africa as the next big energy investment boom, then Nigeria – as its leading traditional energy hub and the highest producer of crude oil by volume averaging 1.3 million barrels per day – would likely be at the heart of it.

“We have historic strength in traditional energy production, as well as future potential in renewable and nuclear energy.

“The Dangote Refinery, inaugurated in May 2023, is expected to have the capacity to process about 650,000 bpd, making it the largest single-train refinery in the world and will completely transform Nigeria’s downstream footprint.

“Therefore, Nigeria could lead Africa toward some very profound changes and shifts in our fuels and energy mix, including a significant reduction in energy imports.”

Philanthropy After Making It Big

And Otedola noted: “When it comes to business and investment, I have taken risks, chased my dreams, enjoyed the thrill, fought off disappointments and ultimately achieved success and recognition.”

So, what follows next? “Giving it back to society and those less fortunate.”

The billionaire added that his approach to philanthropy mirrors investing. “I call it taking a direct route. When it comes to my business, I’ve never had an army of investment managers or outsourced my thinking to some family office investment manager. I have relied on my own research and instincts, whether it’s about buying a business or backing a venture.

“My conduit for a direct approach to philanthropy is my very own daughter and her foundation, which I take a deep personal interest in.”

That daughter is none other than Florence “Cuppy” Otedola an international disk jockey, advocate for youth empowerment and a recently appointed “Goal Keeper” of the Bill Gates foundation in recognition of her philanthropic work.

She’s the founder of the Cuppy Foundation, through which the Otedolas and the entrepreneur himself have channelled their money and given time to various worthy causes.

These include $17 million to UK-based Save The Children Fund which goes straight to Nigeria for humanitarian resources, a $135,000 Oxford University Hardship Fund for African Students, $67,500 Kings College London Hardship Fund for African Students, and $100,000 New York University Fund for African Students.

Over the last two decades, the Otedolas have also given generously to several educational institutions in Nigeria for underprivileged students. “For me, and my daughter, and my whole family, it’s all about bringing positive change with a positive mindset.

“Societal problems and poverty are not unique to Nigeria; every country faces its own challenges. One person, one family cannot exact change on its own.

“I count on fellow Nigerians and honored friends – including, but not limited to, Aliko Dangote [billionaire philanthropist and Africa’s richest man], Samad Rabiu [industrialist] and the current serving president of Nigeria Bola Ahmed Tinubu – who give me belief that a few individuals with the right ideas and motives can change the entire course of a nation for a better future.”