In a recent evaluation by Forbes, billionaire investor Femi Otedola has secured the fourth position among Nigeria’s top billionaires, boasting a current valuation of $1.2 billion. This notable rise is credited to Otedola’s substantial ownership of over 70% in Geregu Power, a major player in the power generation sector.
Otedola, In 2022 and 2023 strategically reduced his stake in Geregu from over 95%, making room for institutional investors to join the venture. Among the key investors are the Afrexim Fund for Export Development in Africa, the State Grid Corporation of China, and various pension funds and institutional investors.
Aside from his significant role in the energy industry, Otedola has extensive real estate holdings in prime locations such as Lagos, Dubai, London, and Monaco. Additionally, he maintains investments in financial institutions, holding shares in Zenith Bank and FBN Holdings.
This valuation update coincides with Otedola’s generous philanthropic act of donating N1 billion to the Lagos State Security Trust Fund, highlighting his unwavering commitment to giving back to the community.
In terms of finance, Geregu Power Plc, where Otedola holds controlling stakes, witnessed a remarkable N625 billion gain. Geregu Power’s market capitalization surged from N327.5 billion to N997.5 billion between 2022 and 2023, driven by a substantial share price increase from N149 to N399.
Around the same time, FBN Holdings, the parent company of First Bank Limited, experienced a commendable N437.9 billion surge in market capitalization. The group achieved an impressive 116.1% annual gain on the NGX, concluding the year with a share price of N23.55, compared to N10.90 in December 2022. FBN Holdings reported gross earnings of N922.2 billion, reflecting an 80.1% year-on-year increase from 2022. Recently, FBN Holdings crossed the N1 trillion market cap milestone.
Otedola’s financial journey has witnessed fluctuations, with notable entries and exits from Forbes’ billionaire list. His initial inclusion was in 2009, followed by a re-entry in 2014. These fluctuations were influenced by various economic conditions, including the oil price slump in 2009 and subsequent share price fluctuations of his oil company, Forte Oil, in the following years.
