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In a calculated move to fortify his investment portfolio, Nigerian billionaire businessman and philanthropist Femi Otedola is reportedly acquiring shares in Dangote Cement, according to sources familiar with the matter.
This investment follows Otedola’s return to the Forbes Africa’s Richest List, where he now boasts an estimated net worth of $1.2 billion, securing his position as Nigeria’s fourth-richest individual. However, this figure only scratches the surface of Otedola’s substantial wealth.
Otedola’s influence lifts Dangote Cement shares over 50 percent amid bullish trends
Otedola, the chairman of Geregu Power and director of FBN Holdings, renowned for his stock-picking prowess, has once again demonstrated his market acumen. Recent reports indicate that all his investments on the Nigerian Exchange have yielded triple-digit percentage returns.
His latest move to acquire Dangote Cement shares, coupled with prevailing bullish pressures on the Nigerian Exchange, has significantly driven up the market value of the cement company’s shares since the start of the year.
As of the time of drafting this report, Dangote Cement shares have surged by more than 50 percent, rising from N319.9 ($0.357) to N489.9 ($0.547). This surge has propelled the company’s market capitalization above N8.2 trillion ($9.1 billion).
Dangote Cement, Africa’s leading cement producer with an annual capacity of 55 million tonnes, plans to expand further. The company is constructing a new 6-million-tonne cement manufacturing facility in Itoro, Ogun State, exclusively for export.
Otedola’s strategic investments fuel diversification and portfolio expansion
Otedola’s influence on the stock market was notable in 2023, as his foray into Transnational Corporation of Nigeria (Transcorp) shares initiated a rally that catapulted the stock into the top 5 performing stocks of the year, with a remarkable 1,500 percent increase over the past one year.
His strategic purchase of First Bank shares in 2022, when the stock was trading below N5 ($0.0056), led to him becoming the largest shareholder of the bank, which has recently achieved a trillion market cap milestone and trades above N25 ($0.0279) per share.
In December 2023, Otedola achieved another milestone by becoming the second individual to own stakes in two companies worth over N1 trillion ($1.1 billion). This accomplishment mirrored the success of his rapidly growing power generation company, Geregu Power Plc, and aligns with his ongoing commitment to diversify and expand his investment portfolio.
