Otedola Opens Up on Diesel Deregulation Row with Obasanjo
Billionaire businessman Femi Otedola has revealed details of a tense exchange with former Nigerian president Olusegun Obasanjo over diesel deregulation in 2004, as recounted in his forthcoming memoir Making It Big: Lessons from a Life in Business.
The clash came shortly after the federal government deregulated diesel importation — a move based on advice from Otedola and other private sector leaders. The policy ended the Nigerian National Petroleum Corporation’s (NNPC) monopoly and subsidy regime on diesel imports.
How Diesel Deregulation Sparked a Political Storm
Zenon’s Rise and the Backlash
Otedola’s company, Zenon Petroleum, quickly became the market leader after deregulation. However, the sudden shift in the sector triggered resistance from competitors and political actors.
“My opponents’ reaction was to tell the president that we’d turned the market upside down… and that industries were shutting down because there was no diesel,” Otedola wrote.
The 2am Phone Call from Obasanjo
The businessman recounted being woken up by an irate call from the president in the early hours.
“‘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!’”
Meeting in Abuja and Clearing the Air
The next day, Otedola flew to Abuja to face Obasanjo in person. He explained that six ships loaded with diesel were already waiting to discharge, presenting letters of credit as proof.
He alleged that some NNPC officials, opposed to deregulation, had deliberately misled the president to protect the benefits of the subsidy system.
Fighting Misinformation and Restoring Confidence
To counter the false narrative, Otedola began publishing diesel availability and prices in newspapers, reassuring both the public and the presidency that supply was steady.
He described Obasanjo as a determined and robust leader who, once convinced of a person’s integrity, would remain firmly supportive.
Conclusion
The incident underscores the political and corporate resistance that often accompanies market reforms in Nigeria’s oil sector. Otedola’s memoir promises more insights into the high-stakes decisions that shaped his business empire.
