Otedola: My Father’s £250,000 Loan Scaled Up Zenon’s Business

Billionaire businessman Femi Otedola has disclosed that a £250,000 loan from his late father, Sir Michael Otedola, the former Governor of Lagos State, played a decisive role in scaling up Zenon Petroleum, the oil trading company that transformed his fortunes and positioned him among Nigeria’s top industrialists.

The revelation comes in his memoir Making It Big, where Otedola reflects on the role of family support and mentorship in shaping his entrepreneurial journey. He draws a parallel between the lifeline he received from his father and the guidance he now offers to his children, emphasizing the importance of financial backing and encouragement in nurturing ambition.

He recalled how he once supported his daughter, DJ Cuppy, with ₦10 million to stage her first major show at the age of 16, which featured singer Davido. The event turned out poorly, with only a few attendees including former Cross River State Governor Donald Duke and his wife Onari, alongside lawyer Jide Coker. Distressed by the low turnout, Cuppy expressed her disappointment, but Otedola responded by opening the gates for free entry. The experience, he said, became an early lesson in resilience and perseverance. Today, both Davido and DJ Cuppy have grown into global stars, with Davido becoming one of Africa’s biggest music exports and Cuppy carving out her own space as an international DJ, producer, and UN ambassador.

The billionaire also recounted the summer of 2019 spent in Monaco with his children, where he shared wisdom inherited from his father along with insights from his decades-long career. He acknowledged that role models such as the late Wahab Folawiyo, whose pioneering exploits in business he studied closely, also helped shape his entrepreneurial outlook.

Reflecting on his business rise, Otedola explained that by 2003 he had spotted an opportunity in Nigeria’s fuel retail market and secured financing to establish Zenon Petroleum and Gas Limited. Within a year, he invested heavily in downstream infrastructure, acquiring depots in Apapa and Ibafon, as well as cargo vessels with a combined capacity of 147,000 metric tons. His expansion drive also included a fleet of 100 fuel tankers worth over ₦1 billion, giving Zenon control of a significant portion of the country’s diesel supply by 2005.

The company grew rapidly, becoming the primary supplier of diesel to major manufacturers such as Dangote Group, Nigerian Breweries, Coca-Cola, MTN, Nestlé, and Guinness. In 2007, Zenon secured a $1.5 billion syndicated loan from ten banks to construct what would become Africa’s largest premium motor spirit storage facility. That same year, Otedola acquired nearly 29 percent of African Petroleum, further consolidating his influence in Nigeria’s oil and gas sector.

Zenon later expanded into the kerosene market, further strengthening its presence in the energy industry. However, the company became entangled in controversy during the 2012 fuel subsidy scandal, when it was alleged to have owed $1.4 million to the government. The issue escalated after a sting operation exposed lawmaker Farouk Lawan demanding bribes from Otedola to clear Zenon’s name. Lawan was later convicted of corruption, while Otedola consistently maintained his innocence throughout the saga.

Through it all, Otedola insists that resilience, mentorship, and strategic risk-taking have been at the core of his journey — values he credits to his father’s early intervention with the loan that changed his destiny.