Femi Otedola, Nigerian billionaire and oil magnate, has opened up about a dramatic midnight confrontation with former President Olusegun Obasanjo over the deregulation of diesel, exposing the deep-rooted resistance from powerful interests within the Nigerian National Petroleum Corporation (NNPC).
In his upcoming memoir, “Making It Big: Lessons from a Life in Business”, Otedola shares exclusive insights into a tense episode that took place in 2004 — a defining year for Nigeria’s downstream oil sector.
According to Otedola, the federal government had just taken a bold step to deregulate diesel importation, removing NNPC’s monopoly and allowing private companies to participate. The move was based on recommendations from key industry players, including Otedola himself, who assured the presidency that the private sector could meet national demand efficiently.
Zenon Petroleum, Otedola’s company, quickly emerged as a market leader, disrupting the existing order. However, this progress didn’t sit well with entrenched interests benefiting from the former subsidy regime.
“When President Obasanjo deregulated diesel in 2004, Zenon took an unassailable lead in the market,” Otedola wrote.
“My opponents’ reaction was to tell the president that we had turned the market upside down and that industries were shutting down due to diesel scarcity.”
In a shocking revelation, Otedola recounted receiving a heated phone call from President Obasanjo at 2 a.m., following alarming reports of a diesel shortage.
“‘You’re a stupid boy! God will punish you!’ he shouted. ‘You persuaded me to deregulate diesel, and now there’s no diesel in the country!’”
Realizing the gravity of the situation, Otedola flew to Abuja the following day to meet the president in person. The confrontation continued face-to-face, with Obasanjo visibly angry. But once tensions eased, Otedola provided hard evidence — including letters of credit and shipping documentation — to prove that six vessels laden with diesel were waiting to discharge.
He claimed that internal saboteurs within the NNPC, who were opposed to the deregulation policy, had deliberately misinformed the president to protect their financial interests tied to the fuel subsidy.
To counter the misinformation campaign and regain public confidence, Otedola began publishing daily updates on diesel availability and pricing in major newspapers, a strategic move that reassured both the government and the general public.
Despite the tension, Otedola praised Obasanjo as a strong-willed and principled leader who stood by his convictions once presented with the truth.
“President Obasanjo was a determined and robust leader. Once convinced of someone’s integrity, he would back them fully,” he added.
This revelation offers a rare glimpse into the behind-the-scenes battles that shaped Nigeria’s petroleum policy, highlighting the fierce pushback reformers often face from entrenched interests within powerful institutions.
As Otedola prepares to launch his memoir, the business world and political observers alike are bracing for more eye-opening accounts from one of Nigeria’s most influential entrepreneurs.
