In a dramatic account from his upcoming memoir, 'Making It Big,' Nigerian billionaire Femi Otedola reveals a fiery confrontation with former President Olusegun Obasanjo over the 2004 deregulation of diesel importation. The event, which led to a heated exchange, provides a fascinating look into the high-stakes world of Nigerian business and politics.
The Deregulation Dilemma
In 2004, Femi Otedola, then head of Zenon Petroleum, took on a massive challenge: he convinced President Obasanjo to deregulate the diesel market. His argument was that the private sector could more efficiently meet Nigeria's diesel demand, eliminating the need for the state-owned NNPC's costly subsidies. The government, in turn, liberalized the market, making diesel the first petroleum product to be fully free of government subsidy
The Infamous 2 AM Phone Call
The move was met with immediate backlash from Otedola's rivals, particularly those in the NNPC who stood to lose their lucrative subsidy-fueled business. They began spreading rumors to the President that the deregulation had caused a nationwide diesel scarcity, leading to the shutdown of industries and a halt in transportation.
This misinformation led to a furious late-night phone call from an enraged Obasanjo. Otedola recalls the President screaming, "You're a stupid boy! God will punish you! You persuaded me to deregulate diesel, and now there’s no diesel in the country!"
Clearing the Air: A Bold Defense
The very next day, Otedola flew to Abuja to confront the President. Facing a livid Obasanjo, he calmly insisted that the rumors were lies spread by his jealous competitors. To prove his point, Otedola revealed he had six ships loaded with diesel waiting to be discharged, and was even paying costly demurrage fees due to the delays
To resolve the issue and expose the misinformation, Otedola proposed a bold solution: they should take out full-page advertisements in national newspapers. These ads would publicly announce the availability and price of diesel, directly countering the false claims of scarcity.
Ultimately, Otedola’s direct approach and transparent solution won over the determined President. In his book, Otedola reflects that Obasanjo, once he trusted someone, would stop listening to the "naysayers." This pivotal moment not only saved Otedola's business but also affirmed the government's decision to deregulate the diesel market, ending the era of state-sponsored subsidies.
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