Nigerian billionaire businessman Femi Otedola, chairman of leading power generation company Geregu Power and one of Nigeria’s most valuable lenders, First Bank of Nigeria Holdings Plc (FBN Holdings), is nearing a $2-billion net worth milestone, adding to his wealth pile that crossed $1.7 billion two weeks ago.
Forbes, the U.S. business magazine tracking ultra-high-net-worth individuals, pegs Otedola’s net worth at $1.9 billion, up from $1.2 billion in January. This surpasses his previous peak of $1.8 billion in 2016.
Otedola’s strategic investment moves pay off
Otedola’s focus on operational efficiency across his portfolio has fueled earnings growth and valuations — highlighting his impact not only on the firms he manages but also on those in which he holds significant ownership. He has not only grown his wealth but also boosted shareholder returns across his holdings while expanding his philanthropic efforts.
After a seven-year hiatus from the Forbes list, he strategically reshaped his portfolio. This included selling his shares in Forte Oil (now Ardova Plc) to pivot towards the energy sector through Geregu Power, Nigeria’s first publicly traded utility.
His resurgence on the Forbes list stems from his majority stake in Geregu Power and his diverse asset base. This includes offshore cash, international real estate holdings, stakes in leading Nigerian banks FBN Holdings and Zenith Bank, and recent investments in Dangote Cement.
Nigerian naira boosts billionaire’s fortune
However, the recent bump in his fortune to $1.9 billion is partly linked to the Nigerian naira’s appreciation, currently the world’s best-performing currency in April.
The naira’s rise follows a series of devaluations that saw it reach an all-time low in mid-March, losing more than 40 percent against the dollar year-to-date. However, it has since strengthened by 34 percent, the most globally — this is attributed to recent central bank support measures.
Goldman Sachs economists initially predicted the naira to reach 1,200 per dollar by year-end. They’ve revised their forecast upwards due to the central bank’s actions, now seeing potential for further appreciation. However, they caution that this positive outlook hinges on continued policy commitment.
Mixed bag for Nigerians
While the stronger naira benefits some sectors, its full impact on disposable income remains muted due to persistent inflation. The recent threefold increase in electricity prices for some urban consumers is likely to strain household budgets and businesses.
