The Audacious 1 a.m. Call That Made Femi Otedola The “Diesel King”
In the world of high-stakes business and energy deals, a single phone call can change everything. For Nigerian billionaire and activist investor, Femi Otedola, one such call, made at 1 a.m. to his business rival, Wale Tinubu of Oando Plc, became the stuff of legend.
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This dramatic late-night negotiation, which Otedola recounts in his forthcoming memoir, “Making It Big: Lessons from a Life in Business,” is a perfect illustration of the audacious risks and bold strategies that defined his rise in the Nigerian energy sector.
The incident occurred as Otedola was at a fuel depot, overseeing a critical fuel transfer. It was late, and he noticed a vessel named “Ocean Challenger,” owned by Oando, sitting offshore. The ship was loaded with diesel and scheduled for delivery to one of Oando’s key customers.
For most people, this would be an unmovable obstacle, but Otedola saw an opportunity. After a futile attempt to negotiate with Oando’s operations staff, he went straight to the top. At 1 a.m., he called Wale Tinubu directly.
“I made him an offer he couldn’t refuse,” Otedola famously quoted from The Godfather. The offer? An extra N6 per litre for the entire cargo. At the time, the cargo was estimated to be around 6 million litres, with a total value of N180 million. By offering an additional N6 per litre, Otedola was essentially adding a premium of N36 million to the deal.
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Without hesitation, Wale Tinubu accepted the offer, and the cargo was diverted to Otedola’s tanks. This single, bold move not only secured a vital supply for Otedola but also cemented his reputation as a ruthless and effective businessman who was willing to pay a premium to win.
From Government Connections to Market Dominance
Otedola’s foray into the oil business was a journey of strategic pivots and relentless ambition. Initially, as the son of a former governor, he had access to diesel allocations through government-linked channels.
However, when the political tide turned and those connections dried up, Otedola recognized a critical lesson: he needed a sustainable, private-sector strategy. He knew that relying on political patronage was a dead end for long-term growth.
This realization led to what many consider one of his most audacious early moves. He approached a private company for new supplies and, in a moment of pure genius, offered to buy their entire depot. The asking price for the depot was a seemingly reasonable $4 million. Otedola, however, proposed an astonishing $20 million, a premium of $16 million above market value.
This aggressive and seemingly over-the-top bid wasn’t a mistake; it was a deliberate statement. It signaled that he was not just another player but a serious contender ready to dominate the market. This aggressive posture was the beginning of Zenon Petroleum and Gas in 2003, the company that would soon become synonymous with his legendary business acumen.
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The Reign of the “Diesel King” and a Strategic Pivot
With Zenon Petroleum, Otedola quickly cornered a significant share of the diesel supply chain, winning major contracts from top Nigerian corporations and solidifying his reputation as the “King of Diesel.” His rise was marked by daring plays, strategic acquisitions, and an unwavering focus on seizing opportunities.
The Ocean Challenger deal with Wale Tinubu was just one of many that defined this era. He later acquired African Petroleum, which he rebranded as Forte Oil, and led a sweeping transformation that included diversification and improved corporate governance. This showed his evolution from a commodity trader to a sophisticated corporate leader.
Eventually, Otedola made another strategic pivot, exiting the downstream oil industry to focus on other sectors. His current investments, particularly in the power sector with Geregu Power Plc, demonstrate his ability to adapt and find new opportunities for growth in a rapidly changing economy.
Femi Otedola’s memoir, “Making It Big,” promises to be a treasure trove of these kinds of revelations, offering a candid glimpse into the risks, negotiations, and audacious bets that shaped one of Nigeria’s most remarkable business careers. The book is set to launch on August 18, 2025, and is highly anticipated by entrepreneurs and business enthusiasts who are eager to learn from a master of the game.
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