Nigerian billionaire Femi Otedola, chairman of Geregu Power and First Bank of Nigeria Holdings Plc (FBN Holdings), is on track to reach $2 billion in net worth, adding to his $1.7 billion fortune from two weeks ago.
Forbes estimates Otedola’s net worth at $1.9 billion, up from $1.2 billion in January. This outpaces his previous high of $1.8 billion in 2016.
Otedola’s concentration on operational efficiency in his portfolio has led to increased earnings and values, demonstrating his impact not just on the enterprises he manages but also on those in which he has major ownership. He has increased not only his fortune, but also shareholder returns across his enterprises, all while growing his charity endeavors.
After seven years away from the Forbes list, he systematically restructured his portfolio. He sold his holdings in Forte Oil (now Ardova Plc) to focus on the energy sector with Geregu Power, Nigeria’s first publicly traded utility.
His reappearance on the Forbes list is due to his controlling interest in Geregu Power and varied asset portfolio. This portfolio includes offshore funds, foreign real estate assets, stakes in Nigerian institutions FBN assets and Zenith Bank, and recent investments in Dangote Cement.
However, the recent increase in his fortune to $1.9 billion is mainly due to the Nigerian naira’s gain, which was the world’s best-performing currency in April.
The naira’s rebound comes after a series of devaluations that saw it hit an all-time low in mid-March, losing more than 40% against the dollar year to date. However, it has since strengthened by 34%, the most globally, owing to recent central bank stimulus measures.
Goldman Sachs experts initially expected that the naira would reach 1,200 per dollar by the end of the year.They have changed their forecast upwards in response to the central bank’s moves, and now see possibility for additional appreciation. However, they warn that this optimistic forecast is contingent on continuing policy commitment.
Although the higher naira boosts certain industries, its full impact on discretionary income is limited due to ongoing inflation. The recent threefold increase in electricity costs for some metropolitan consumers is expected to put a strain on home and corporate budgets.
