Femi Otedola Opens Up About Losing N200 Billion

Femi Otedola is one of Nigeria’s most well-known billionaires, but even he has had to face the harsh realities of losing big. 

In his memoir Making It Big, he opens up about a time when he lost N200 billion, an amount that no one could have anticipated. 

But it wasn’t just about the money; it was about the lessons he learned, the humility he found, and the resilience that helped him rebuild his empire. Here’s a glimpse into his journey and what we can take away from it.

The Perfect Storm: Oil Prices and a Currency Crisis

It all started in 2008, when crude oil prices hit an all-time high of $147 per barrel. Confident in the market’s stability, Otedola made a bold move and placed a $500 million order for diesel. 

But the market crashed shortly after, and oil prices dropped to $37 per barrel. That diesel, which was already en route to Nigeria, suddenly lost much of its value, leaving Otedola with a massive loss.

But that wasn’t the only blow. In the same year, Nigeria’s currency took a hit. The naira was devalued, and suddenly, the loans Otedola had taken out in dollars became even harder to pay back. 

What had once been manageable debt became a mountain to climb. He watched as N60 billion vanished almost overnight, along with an additional N40 billion in interest payments.

A Hard Lesson in the Stock Market

But Otedola’s troubles didn’t end there. He had significant stakes in some of Nigeria’s biggest banks, including Zenith Bank and UBA. At one point, his 2.3 billion shares in Zenith Bank were worth a lot—N60 per share. 

Had he sold when the market was high, he would have made a N191 billion profit. But Otedola didn’t sell. He believed the market would continue to rise, and by the time the financial crash hit, his shares plummeted in value.

Looking back, Otedola admits that his decision to hold on was a mistake. “Never become too attached to your assets,” he now says. The market is unpredictable, and even the most solid investments can turn sour. His story serves as a reminder to never get too comfortable, even when things seem to be going well.

Hitting Rock Bottom: The Road to Recovery

By the time the dust settled, Otedola’s debt had ballooned to N220 billion, and the only way forward was to make painful decisions. He reached an agreement with Nigeria’s Asset Management Corporation (AMCON) to help absorb the toxic debts. 

In exchange, he handed over some of his most valuable assets,his estates in Lagos, Abuja, and Port Harcourt, his truck parks, filling stations, oil storage facilities, and even his private jet.

Though it was a heartbreaking moment, Otedola saw this as his “lifeboat in the storm.” Losing his empire was devastating, but it gave him the chance to rebuild. He learned the value of stability over size, and since then, he’s made sure to approach business with a more disciplined and cautious strategy.

A New Beginning: From Loss to Resilience

Looking back on this chapter, Otedola is the first to admit that the experience humbled him. Losing everything forced him to reset, rethink his approach, and start over. 

But it was that very setback that allowed him to bounce back even stronger. Today, Otedola serves as the Chairman of FBN Holdings and remains one of the most influential figures in Nigerian business.

His recovery is a testament to resilience, the ability to rise after a fall. It’s a reminder that failure isn’t the end; it’s simply a part of the journey. Otedola’s story teaches us that adversity isn’t something to fear, but rather something to embrace and learn from.

The Lessons for Us All

Otedola’s story isn’t just about losing money. It’s about the importance of risk management, patience, and strategic thinking. His experience teaches us that no one is immune to failure, and that’s okay. What matters is how you handle it.

For entrepreneurs, the lesson is clear: make thoughtful decisions, don’t get too attached to your assets, and always be ready to adapt. And, most importantly, if you do face setbacks, don’t let them define you. Instead, use them as the foundation for something even greater.

Femi Otedola’s journey isn’t just about financial success; it’s about the courage to rebuild, the wisdom to learn, and the resilience to keep moving forward. And that’s a lesson we can all take to heart.