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At the height of his economic success, Nigerian billionaire Femi Otedola revealed how banks used “bewitching ladies” to acquire his deposits and loan transactions.
Otedola reportedly disclosed this in his upcoming biography, “Making It Big: Lessons from a Life in Business,” which has not yet been made public.
According to extracts from the memoir obtained by TheCable, Otedola described how several financial disasters, such as the global collapse of crude oil prices, the devaluation of the naira, and the stock market meltdown, destroyed a large amount of his wealth and left his companies heavily indebted.
Overall, I lost almost US$480 million due to the drop in oil prices, US$258 million as a result of the naira’s devaluation, US$320 million as a result of interest accruing, and an additional US$160 million as a result of the stock market meltdown.
“It was heartbreaking, like a horrible nightmare, but a nightmare would have been better: I would wake up when the day broke. Otedola stated, “There was no waking up from this.
“Banks once went to great lengths to do business with me,” Otedola recalled, describing the dramatic shift in his fortunes.
He recalled, “I was the bank’s darling once, and they did everything in their power to court me, do business with me, give me loans, and take deposits from me.”
“To make their offers seem more convincing, they would send seducing women, and now I was waking up to the sight of burly, barrel-chested men waiting for me to leave my compound.”
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From Diesel Drums to an Enormous Business Empire
According to reports, Otedola rose to prominence with Zenon Petroleum, which expanded from selling diesel in drums to holding the biggest market share in the area.
Later, he expanded by purchasing African Petroleum and rebranding it as Forte Oil Plc, which at its height was among the top-performing equities on the Nigerian Exchange.
The trouble started in 2008 when Otedola purchased a large shipment of diesel at a price of $147 per barrel for crude oil, only to have it arrive after the market had plummeted to $40 per barrel.
Along with declining foreign exchange inflows and the depreciation of the naira from ₦120/$ to ₦167/$ in 2009, his enterprises saw low diesel prices and huge dollar liabilities, which caused him to incur enormous debt.