Billionaire investor Femi Otedola has surged to the fourth position on Nigeria’s list of top billionaires, with a current valuation of $1.2 billion, according to Forbes.
This recent reassessment is attributed to his ownership of over 70% of Geregu Power, a power generation business.
In the years 2022 and 2023, Otedola strategically sold down his Geregu stake from over 95%, welcoming institutional investors into the business.
Key investors in Geregu include the Afrexim Fund for Export Development in Africa, the State Grid Corporation of China as well as some pension funds and institutional investors.
Apart from his energy ventures, Otedola holds significant real estate assets in Lagos, Dubai, London, and Monaco. He also owns shares in Zenith Bank and FBN Holdings.
The valuation update coincides with Otedola’s philanthropic gesture of donating N1 billion to the Lagos State Security Trust Fund, underscoring his commitment to giving back.
What you should know
In financial terms, Geregu Power Plc, where Otedola holds controlling stakes experienced 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 share price increase from N149 to N399.
- During the same period, FBN Holdings, the parent company of First Bank Limited, witnessed a commendable N437.9 billion surge in market capitalization.
- The group achieved an impressive 116.1% annual gain on the NGX, closing the year at 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. FBN recently crossed the N1 trillion market cap.
Otedola’s financial trajectory has seen him enter and exit Forbes’ billionaire list over the years, with his notable inclusion in 2009, and subsequent re-entry in 2014.
- The fluctuations were influenced by various economic conditions, including the oil price slump in 2009 and the share price fluctuations of his oil company, Forte Oil, in subsequent years.