Nigerian Mogul Femi Otedola Makes $398 Million In 90 Days

Jun 3 2014, 10:04am CDT | by

Nigerian energy mogul Femi Otedola has become at least $398 million richer between March 3 and June 2 as shares of Forte Oil PLC , a Nigerian Stock Exchange-listed energy distributor, surged 167% in that period.

Forte Oil PLC is primarily engaged in the distribution of petroleum products such as diesel, aviation fuel and Premium Motor Spirit (PMS). The company has over 500 company-owned, dealer-assisted and dealer-developed gas stations spread across the country, oil storage depots in Lagos and Rivers states, a Power plant and a Joint User Hydrant Installation facility in Lagos. The company also sells its own range of automobile lubricants.

On March 3, the company’s stock was trading at N88.4 ($0.55), and at the close of trading today (Monday), its share price was N235.79 ($1.46). According to Akinbamidele Akintola, Vice President, Africa equity sales at Renaissance Capital, the recent unprecedented demand and surge in Forte Oil’s shares may not be unconnected to the company’s recent inclusion in the Morgan Stanley Capital International (MSCI) Frontier Market 100 Index. Listing in such indexes usually attracts interest from global investors who track these companies.

Otedola became the largest shareholder in Forte Oil (formerly called African Petroleum) in 2007 when he acquired a 28.7% stake in the company from the government-owned oil company, the Nigerian National Petroleum Corporation (NNPC), for $120 million. He subsequently appointed himself as chairman of the company. Otedola, 47, has gobbled up additional shares over the years and now owns more than 40% of the $1.5 billion (Market Capitalization) company. According to information available from registrar sources, he currently owns 436,809,537 shares valued at N103 billion ($635 million). He pocketed at least $11 million in dividends from profits made by his company in February as Forte Oil paid shareholders a dividend of N4 ($0.0023) per ordinary share from its 2013 profits. A representative for Femi Otedola could not be reached for comment at press time.

Otedola briefly featured on FORBES’ billionaires list in 2009 but dropped out of the rankings shortly afterwards when shares of his African Petroleum (now called Forte Oil) plunged more than 80% in the wake of a personal feud with Aliko Dangote . At the time, Otedola told anyone who cared to listen that Dangote used his far-reaching influence as the president of the Nigerian Stock Exchange to manipulate African Petroleum shares to settle their personal difference. The two have since become friends. Otedola is listed on the FORBES list of the 50 richest Africans with a fortune we estimated at $410 million in November. With the recent surge in Forte Oil shares, we now peg his fortune at over $800 million. If Forte Oil’s stock continues its upward trend, it might not be long before Otedola regains his billionaire status.

Follow me on Twitter @MfonobongNsehe

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Your Parent Or Kid Moved In: Are You Covered?
A record 57 million Americans now live in multigenerational family households — double the number in 1980, according to a new Pew Research Center study. And I bet many of them have the wrong homeowner’s or renters...
 
 
Pandora Looks to Challenge Terrestrial Radio's Dominance in Cars
Pandora Media is one of the largest Internet radio providers in the U.S. with more than 75 million active users. While the company’s active user count has increased at a robust pace historically, it is likely to slow...
 
 
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
It’s January 2026. New York Yankees owner Hal Steinbrenner gets out of his driverless car and triumphantly marches before the gathered press to introduce his prized new free agent. It’s a record-breaking contract—over...
 
 
Volkswagen AG New Coverage: Trefis Price Estimate at $51
Volkswagen AG is the second largest automaker in the world behind Toyota and slightly ahead of GM, selling 9.72 million vehicles globally in 2013. Established in 1937, Volkswagen AG, along with its 340 subsidiary...
 
 
 

Latest from the Network

Twin blasts in Nigeria kill five
Abuja, July 28 (IANS) At least five people were killed in two bomb blasts in Nigeria's Kano city, a mainly Christian area, Sunday afternoon, police said. The first blast occurred under a bridge in the Sabon Gari...
Read more on Politics Balla
 
Australia gives $5 mn for Gaza relief
Sydney, July 28 (IANS) The Australian government is providing five million Australian dollars (4.7 million US dollars) in urgent humanitarian assistance to Gaza, Foreign Minister Julie Bishop announced Monday. The...
Read more on Politics Balla
 
France wants expatriates to leave Libya
Paris, July 28 (IANS) French government Sunday called on all its nationals to quit Libya, "given the deteriorating security situation" prevailing in the African country. "All our nationals are invited to get in touch...
Read more on Politics Balla
 
Israel denies responsibility for UN school attack deaths
Jerusalem, July 28 (IANS) The Israeli army Sunday denied responsibility for the deaths of 16 Palestinians during Thursday's attack on a UN school in northern Gaza. "The inquiry as well as documented footage conclude...
Read more on Politics Balla
 
India lose badminton semi-final to England 3-0
Glasgow, July 28 (IANS) India lost to England 3-0 in the semi-finals of the badminton competition at the Commonwealth Games here late Sunday night. India's men's and mixed doubles teams fought well over three games,...
Read more on Sport Balla
 
Danielle O'Hara's husband accused of cheating
London, July 28 (IANS) Model Danielle O'Hara's footballer husband Jamie accused of cheating on her with a nightclub blonde. The news has surfaced just days after she unveiled a tattoo dedicated to her husband. Mirror....
Read more on Celebrity Balla
 
CWG: India knocked out by England in badminton
Glasgow, July 28 (IANS) India were knocked out of badminton semi-finals 0-3 by England, who will now play for gold against Malaysia, who struggled their way past Singapore 3-2 at the Commonwealth Games here. England...
Read more on Sport Balla
 
Real Madrid coach rules out another striker
Madrid, July 28 (IANS) Real Madrid coach Carlo Ancelotti has for the moment ruled out adding another striker to his star-packed squad. Speaking after his side's 1-1 draw against Inter Milan in California, which ended...
Read more on Sport Balla
 
Ricciardo wins F1 Hungarian Grand Prix
Budapest, July 28 (IANS) Red Bull driver Daniel Ricciardo of Australia, in his rookie year on the F-1 circuit, won the Hungarian Grand Prix Sunday. He managed to slide by Ferrari's Fernando Alonso (Spain) who finished...
Read more on Sport Balla
 
UN chief appeals Israelis, Palestinians to extend truce
United Nations, July 28 (IANS) UN Secretary-General Ban Ki- moon Sunday urged "in the strongest terms" both the Israelis and Palestinians to extend, for an additional 24 hours, the humanitarian ceasefire that was in...
Read more on Politics Balla