‘I’m Finished’: Femi Otedola Recounts Losing N200 Billion to Oil and Stock Market Crash
Billionaire Femi Otedola reveals the stunning details of how he lost nearly N200 billion in his new autobiography. Learn about the perfect storm of an oil crash, naira devaluation, and stock market losses that almost wiped him out.
LAGOS, NIGERIA – Nigerian billionaire and business magnate Femi Otedola has shared a stunning account of one of his career’s most challenging periods, revealing how a “perfect storm” of a global oil crash, currency devaluation, and a stock market collapse led to the loss of nearly N200 billion of his personal fortune.
The gripping story is detailed in his recently released book, Otedola: An Autobiography, where he chronicles the near-total collapse of his once-dominant energy trading empire, Zenon Petroleum & Gas, and the humbling path he took to recover from the brink of financial ruin.
The Perfect Storm: A Three-Pronged Financial Disaster
Otedola’s account serves as a powerful case study in how quickly fortunes can change in the volatile world of global commodities and finance. His troubles were triggered by three simultaneous events that created a devastating domino effect.
1. The Oil Crash That Started It All
In 2008, the global oil market was at its peak, with crude oil prices soaring to an unprecedented $147 per barrel. Confident in the sustained boom, Otedola, then a major importer of diesel into Nigeria, placed a massive order for a shipment worth $500 million.
However, disaster struck while the cargo was still on the high seas. The global financial crisis hit, and crude prices crashed spectacularly, plummeting to just $37 per barrel within weeks.
“The diesel I’d ordered when the price was astronomically higher was already on the high seas,” Otedola recounted in his memoir. “Now, it was worth a fraction of my purchase price. I said to myself, I’m finished.”
2. Naira Devaluation Adds to the Pain
As the oil price crash hammered Nigeria’s revenues, the Central Bank of Nigeria (CBN) was forced to devalue the naira to protect the nation’s dwindling foreign reserves. This move massively compounded Otedola’s problems.
The loans he had secured to finance his diesel importation were taken at an exchange rate of N117 to the US dollar. Suddenly, he was required to repay those same loans at a new rate of N165 to the dollar. The currency shift alone instantly inflated his debt by billions.
“I watched N60 billion evaporate before my eyes, alongside N40 billion in interest payments,” he said, detailing a N100 billion loss from the devaluation alone.
3. The Missed Stock Market Fortune
At the same time, Otedola was a titan on the Nigerian stock market, holding a massive 8% stake in Zenith Bank (2.3 billion shares) and 6% in UBA. He had purchased his Zenith Bank shares at N12, and at the market’s peak, they had risen to N60 per share—a potential windfall of N191 billion if he had sold.
Blinded by market euphoria, he held on, believing the rally would continue. When the global financial crisis spread to Nigeria, the stock market crashed in tandem with the oil market, wiping out the value of his holdings.
“It remains one of my biggest regrets,” he admitted. “If only I had followed my instincts.”
The Road to Recovery: The AMCON Deal
By the time the dust settled, Otedola was saddled with a staggering debt of N220 billion. To navigate the crisis, he entered into a landmark agreement with the Asset Management Corporation of Nigeria (AMCON), a government entity created to absorb toxic debts from banks after the 2008 crisis.
To settle his obligations, Otedola had to surrender a vast portfolio of his hard-earned assets, including:
Prime real estate in Lagos, Abuja, and Port Harcourt.
Numerous filling stations and truck parks across Nigeria.
Massive storage tank farms in Apapa.
His extensive bank and oil stocks.
His Bombardier private jet.
“It was a lifeboat in the storm,” Otedola wrote of the AMCON deal. “I had to concede that if you sink, you sink, and if you grab a preserver, you’ll stay afloat. I gave it all up to start anew.”
Lessons from a Billionaire’s Brink
Looking back, Otedola, who is now the Chairman of FBN Holdings Plc, describes the experience as a “humbling but transformational moment.” He explains that losing almost everything forced him to reset his approach to business and rebuild his empire with a newfound sense of discipline and risk management. His story serves as a stark reminder of the brutal volatility of markets and a powerful lesson in resilience.
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