Nigerian billionaire Femi Otedola, chairman of Geregu Power and major investor in First Bank of Nigeria Holdings Plc (FBN Holdings), has used his investment skills to increase personal wealth and shareholder returns.
Otedola’s emphasis on operational efficiency throughout his business has boosted profitability and values. The entire market value of the publicly traded companies in which he has holdings has risen to N16.7 trillion ($12.9 billion), demonstrating his influence not just on the firms he controls but also on those in which he has major ownership.
After a seven-year break, the prominent businessman has returned to the global billionaires club, bolstered by his diverse asset portfolio. This portfolio consists of offshore cash, substantial worldwide real estate holdings, and investments in blue-chip firms. His homecoming coincides with the steady growth of the world’s ultra-wealthy, whose combined net worth has reached a record $14.2 trillion.
Forbes now estimates Otedola’s net worth at $1.7 billion, ranking him fourth in Nigeria and in the top ten in Africa. However, his true fortune is likely far more. This estimate only takes into account his holdings in publicly traded companies on the Nigerian Exchange, which include a stake in Geregu Power, his publicly traded power generation company, as well as holdings in Nigeria’s leading banks, FBN Holdings and Zenith Bank, and recent investments in Dangote Cement, Africa’s largest cement producer.
His interests in these prominent companies are worth about $2 billion, but their total market valuation is nearly $13 billion ($12.9 billion). Almost all of these firms’ shares and market capitalization are trading at or around record highs. His effect goes beyond market capitalization to the profitability of these companies.
Geregu Power, Otedola’s publicly listed power producing company, reported record earnings in 2023, increasing from N10.16 billion ($7.84 million) to N16.05 billion ($12.4 million). Similarly, FBN Holdings, where he holds a 5.65-percent ownership (2,029,376,358 shares), saw an impressive 127-percent profit rise, topping $240 million in 2023. The group’s profit soared to N310.01 billion ($240.76 million), up from N136.31 billion ($105.9 million) the year before.
Femi Otedola continues to exert tremendous power in Nigeria’s economic landscape, with investments spanning several sectors.Billionaires.Africa, a well-known wealth tracking tool, has identified and monitored companies linked to him, estimating their total value at N16.7 trillion ($12.9 billion).
1. Dangote Cement Plc
Market Capitalization: N11.5 trillion ($8.93 billion)
Femi Otedola conducted a strategic acquisition earlier last year, acquiring a share in Dangote Cement Plc. This move, which increased his market influence, increased not just the company’s market capitalization but also the entire value of the Nigerian Exchange. Following Otedola’s investment, Dangote Cement’s shares skyrocketed, reaching a market valuation of N10 trillion ($7.71 billion) on the NGX. Otedola’s ownership has significantly boosted the company’s market value from N6.27 trillion ($4.83 billion) to N11.5 trillion ($8.93 billion).
2. Geregu Power Plc
Market Capitalization: N2.5 trillion ($1.92 billion)
In October 2022, Femi Otedola’s Geregu Power Plc became the first electricity-generating business to be listed on the Nigerian Exchange, marking a historic milestone. This feat was a watershed moment for Otedola’s flagship enterprise. Geregu Power has an exceptional capacity, with three STG5-2000E gas turbine generator units producing 435 MW. Since its debut, the company’s market valuation has increased by an astonishing 810 percent, reaching N2.5 trillion ($1.92 billion), boosted by its significant capacity and strategic placement in the energy sector.
3. 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 risen to the top rank among the country’s most valued banking companies on the Nigerian Exchange. This followed Femi Otedola‘s growing prominence, as he progressed from a significant shareholder to the bank’s largest shareholder and chairman. Otedola’s strong participation coincided with a boom in FBN Holdings’ stock price, which increased from N7.00 in October 2021 to a record N30.50. The group’s market value has increased to N1.37 trillion ($1.05 billion), indicating significant growth.
4. Zenith Bank Plc
Market Capitalization: N1.33 trillion ($1.035 billion)
Otedola’s investing portfolio includes a purported minority position in Nigeria’s Zenith Bank Plc. 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 the country’s most profitable bank. It is one of the largest listed financial services groups on the Nigerian Exchange (NGX). As of this writing, its market capitalization is N1.33 trillion.
