Nigerian billionaire Femi Otedola, chairman of leading power generation company Geregu Power and a major investor in Nigeria’s most valuable lender, First Bank of Nigeria Holdings Plc (FBN Holdings), has parlayed his shrewd investment acumen into personal wealth while also boosting shareholder returns.
Otedola’s focus on operational efficiency across his portfolio has fueled earnings growth and valuations. The total market value of the publicly listed companies he holds stakes in has surged to N16.7 trillion ($12.9 billion), highlighting his impact not only on the firms he manages but also on those in which he holds significant ownership.
In recent times, the leading businessman has made a triumphant return to the global billionaires club after a seven-year hiatus, buoyed by his well-rounded asset portfolio. This portfolio includes offshore cash, extensive international real estate holdings, and stakes in blue-chip companies. His return coincides with the continued swelling of the ranks of the world’s ultra-wealthy, who have seen their combined net worth hit a record $14.2 trillion.
While Forbes currently estimates his net worth at $1.7 billion, placing him fourth in Nigeria and among the top ten in Africa, Otedola’s true fortune is likely significantly higher. This estimate only accounts for his holdings in publicly listed companies on the Nigerian Exchange, encompassing a stake in Geregu Power, his publicly traded power generation company, along with holdings in Nigeria’s leading banks – FBN Holdings and Zenith Bank – and recent investments in Dangote Cement, Africa’s largest cement producer.
His stakes in these leading companies are worth nearly $2 billion, but the combined market capitalization of these companies amounts to nearly $13 billion ($12.9 billion). Nearly all these companies’ shares and market capitalization are trading at record or near-record highs. His influence extends beyond market capitalization and into the profitability of these companies.
Otedola’s publicly listed power generation company, Geregu Power, saw record profits in 2023, with a sharp rise from N10.16 billion ($7.84 million) to N16.05 billion ($12.4 million). Similarly, FBN Holdings, where he holds a 5.65-percent stake (2,029,376,358 shares), witnessed an outstanding 127-percent profit increase, exceeding $240 million in 2023. The group’s profit reached an impressive N310.01 billion ($240.76 million), a substantial jump from N136.31 billion ($105.9 million) reported the previous year.
Femi Otedola continues to wield significant influence in Nigeria’s economic landscape, with his investments spanning multiple sectors. Billionaires.Africa, a renowned wealth tracking platform, has identified and monitored companies linked to him, estimating their combined value at N16.7 trillion ($12.9 billion).
- Dangote Cement Plc
- Market Capitalization: N11.5 trillion ($8.93 billion)
- In a bold move that further solidifies his influence in the market, Femi Otedola led a strategic acquisition earlier this year, clinching a stake in Dangote Cement Plc. This move, elevating his influence in the market, not only boosted the company’s market capitalization but also bolstered the overall valuation of the Nigerian Exchange. Riding on Otedola’s investment, Dangote Cement witnessed an unprecedented surge in its shares, catapulting its market capitalization to a historic N10 trillion ($7.71 billion) on the NGX. Otedola’s stake has undeniably contributed to the remarkable surge, with the company’s market value skyrocketing by a staggering N6.27 trillion ($4.83 billion) to N11.5 trillion ($8.93 billion).
- Geregu Power Plc
- Market Capitalization: N2.5 trillion ($1.92 billion)
- In October 2022, Geregu Power Plc, led by Femi Otedola, achieved a significant milestone as the first electricity-generating company to be listed on the Nigerian Exchange. This feat marked a pivotal moment for Otedola’s flagship company. Geregu Power boasts an impressive capacity with three STG5-2000E gas turbine generator units, collectively generating 435 MW. Since its listing, the company’s market capitalization soared by an impressive 810 percent, reaching N2.5 trillion ($1.92 billion), buoyed by its substantial capacity and strategic positioning in the energy sector.
- First Bank of Nigeria Holdings Plc (FBN Holdings)
- Market Capitalization: N1.37 trillion ($1.05 billion)
- FBN Holdings Plc2, the parent company of Nigeria’s oldest bank, First Bank of Nigeria Plc, has ascended to the top spot among the nation’s most valuable banking groups on the Nigerian Exchange. This follows Femi Otedola’s increasing influence, transitioning from a significant shareholder to the bank’s largest shareholder and chairman. Otedola’s active participation has coincided with a surge in FBN Holdings’ stock price, rising from N7.00 in October 2021 to a record N30.50. Consequently, the market capitalization of the group has skyrocketed to a noteworthy N1.37 trillion ($1.05 billion).
- Zenith Bank Plc
- Market Capitalization: N1.33 trillion ($1.035 billion)
- Otedola’s investment prowess extends to Nigeria’s Zenith Bank Plc, where he holds a reported minority stake. Zenith Bank, a Nigerian lender licensed by the Central Bank of Nigeria, is not only a leading financial services provider in Nigeria and Anglophone West Africa but also holds the title of Nigeria’s most profitable bank. It ranks as one of the biggest listed financial services groups on the Nigerian Exchange (NGX). As of this writing, its market capitalization stands at N1.33 trillion.
