Femi Otedola: Transforming Nigeria’s Power Industry Amidst Challenges

Nigerian billionaire Femi Otedola, a prominent name in the African business landscape, has set his sights on the nation’s power industry. Known for his success in the fuel trade, Otedola has a fortune estimated at $1.6 billion as of November 2025, placing him among Africa’s wealthiest. However, rather than resting on his laurels, the 63-year-old entrepreneur is tackling one of Nigeria’s most persistent issues: an unstable and deficient power sector.

From Fuel King to Power Innovator

Otedola made his initial mark in the fuel industry by founding Zenon Petroleum & Gas Limited in 2003. With innovative supply-chain strategies, Zenon came to dominate Nigeria’s diesel distribution market. By 2007, he expanded his business empire by taking a controlling stake in African Petroleum, which he later rebranded to Forte Oil. However, the industry’s volatility during the 2008 global financial crisis forced him to make tough calls, such as restructuring his companies and selling off assets. Following this, in 2019, Otedola divested his interests in Forte Oil entirely and made a calculated pivot towards power generation by acquiring a majority stake in Geregu Power Plc.

Addressing Nigeria’s Power Deficit

The transition from fuel to power generation aligns with Otedola’s strategic vision to provide sustainable and reliable electricity. Nigeria, despite being the largest economy in Africa, faces a troubling reality: over 85 million Nigerians—roughly 37% of the population—lack access to electricity. The country’s installed capacity of around 13,000 MW pales in comparison to South Africa’s 50,000 MW despite having a much larger population. According to Otedola, unreliable energy infrastructure hampers the economy and forces businesses and households to rely on diesel-powered generators—a costly and unsustainable solution.

Through Geregu Power, which operates natural gas-fired turbines with a current installed capacity of 435 MW, Otedola aims to be at the forefront of resolving Nigeria’s energy crisis. Partnering with organizations such as the State Grid Corporation of China, Geregu is positioned to lead private efforts in power generation. Otedola emphasizes the need for patience, vision, and strategic investments in this highly capital-intensive sector.

A Vision for Diversification and Economic Growth

Otedola’s ambitions extend beyond electricity generation. Reflecting on Nigeria’s heavy reliance on oil revenue, he advocates for economic diversification into sectors like agriculture, technology, and manufacturing. He commends the ongoing efforts of Nigeria’s government to prioritize these industries while highlighting how initiatives in infrastructure development and fiscal reforms could pave the way for long-term economic resilience.

His admiration for fellow entrepreneur Aliko Dangote’s $19 billion oil refinery emphasizes the scale of transformation that private investment can achieve. Similarly, Otedola’s commitment to Geregu Power showcases how visionary leadership can align profit goals with national priorities. As he puts it, no major economy can thrive or attract substantial foreign investment without a reliable energy foundation.

Nigeria as a Business Destination

Ahead of Nigeria’s 2027 elections, Otedola remains optimistic about the country’s prospects. He highlights improvements in infrastructure, from roads to airport modernization, as key steps toward refining Nigeria’s appeal to investors. He believes that fostering an environment of regulatory stability, ease of doing business, and economic returns will encourage both foreign direct investments and the return of Nigeria’s diaspora entrepreneurs.

Otedola urges global investors to view Africa’s opportunities through the lens of potential rather than risk. He argues that the reforms taking place in Nigeria are setting a positive example for Africa, improving transparency and fostering an entrepreneurship-friendly climate. According to him, African markets, including Nigeria, consistently offer some of the highest returns for resilient and visionary investors.

With a track record of overcoming adversity in tough industries, Femi Otedola serves as a testament to how calculated risk-taking and innovation can define a legacy. His pivot from fuel to power illuminates the critical role entrepreneurs play in addressing national challenges and setting new benchmarks for economic transformation in Africa.