Why Otedola and Obasanjo Are Arguing About Diesel Shortage

Nigerian billionaire Femi Otedola has opened up about a heated confrontation he had with former President Olusegun Obasanjo over a diesel shortage that rocked the country in 2004. 

The surprising encounter is one of many detailed in his upcoming memoir, Making It Big: Lessons from a Life in Business, set for release on August 18, 2025.

According to Otedola, what began as a bold economic move convincing Obasanjo to deregulate the diesel sector quickly spiraled into a national crisis, as reports of fuel scarcity triggered outrage from various quarters, including the presidency itself.

Deregulation gone wrong?

Back in 2004, Otedola’s company, Zenon Petroleum, was one of the biggest players in the downstream oil sector. 

He had convinced Obasanjo that removing government control over diesel importation would benefit Nigeria’s economy and ensure consistent fuel supply. The move was meant to reduce inefficiencies tied to subsidies and open the market to private firms.

However, shortly after the policy took effect, reports of diesel scarcity began circulating. Industries were said to be shutting down, trucks were grounded, and panic set in. Obasanjo, who had personally sought assurances that deregulation wouldn’t disrupt supply, felt betrayed.

Otedola recalls receiving an angry call from the president in the middle of the night. According to the oil mogul, Obasanjo yelled over the phone, accusing him of causing national chaos. “You’re a stupid boy! God will punish you!” the former president reportedly shouted.

What is the real cause?

But Otedola insists it was all a setup. In his account, he blames the panic on misinformation spread by industry competitors and insiders in the Nigerian National Petroleum Corporation (NNPC), who were unhappy with deregulation.

“They told the president there was no diesel, that trucks couldn’t move and businesses were collapsing,” Otedola wrote. “But I had six ships loaded with diesel waiting to discharge.”

He added that the delay in offloading the fuel was even costing his company money in demurrage fees. 

To counter the lies, Otedola proposed placing full-page adverts in national newspapers, showing current diesel prices and confirming availability. The goal was to restore public confidence and calm the president’s nerves.

How is trust rebuilt

Eventually, Obasanjo was convinced. Otedola believes that once the president realized he was being misled, he chose to trust him over the naysayers.

“Obasanjo was strong-willed,” he wrote. “But once he made up his mind that someone was honest, he stuck with them. That day, I think he decided to believe me.”

The clash between Otedola and Obasanjo is more than just a personal anecdote. It highlights the political and economic tension that often accompanies reforms in Nigeria’s oil sector. 

Deregulation, while necessary in many cases, tends to disrupt long-standing networks of influence and money making pushback inevitable.

The memoir also promises more insights into Otedola’s career, including his rise in the oil business, his financial setbacks, and the sometimes cutthroat world of Nigerian banking. 

In one chapter, he describes how banks used “bewitching ladies” to attract him to their services during his peak, before turning their backs on him when things went sour.