By Adetayo Omotoyosi Adeolu
Nigerian billionaire businessman, Femi Otedola, has opened up on a tense confrontation he had with former President Olusegun Obasanjo in 2004 over the deregulation of diesel importation, a policy the businessman had championed.
Otedola, in his forthcoming memoir, Making It Big: Lessons from a Life in Business, set for release on August 18, 2025, revealed how the policy shift initially sparked anger from the president following reports of nationwide diesel scarcity.
At the time, Otedola, through Zenon Petroleum, had persuaded Obasanjo that the private sector could fully meet Nigeria’s diesel needs without the Nigerian National Petroleum Company (NNPC). Before deregulation, NNPC had been importing diesel below market rates and receiving government subsidies. Once deregulation was implemented, Zenon rapidly secured dominance in the market.
However, according to Otedola, competitors moved swiftly to undermine him by convincing Obasanjo that the change had disrupted supply, crippled transport, and was forcing industries to shut down.
The oil mogul recounts receiving an enraged phone call from the president at 2 a.m. “You’re a stupid boy! God will punish you! You persuaded me to deregulate diesel, and now there’s no diesel in the country!” Obasanjo allegedly shouted.
Caught by surprise, he flew to Abuja to meet the president. He said, “As soon as Obasanjo saw me, he flew into a rage again. ‘What kind of rubbish is this? ‘What kind of rubbish is this? What kind of nonsense is this?’ He was right in my face, screaming at the top of his lungs.” He said he never said a word until Obasanjo stopped talking.
He then explained the situation to him, saying, “Baba, they’re lying to you. It’s all lies. I have six ships waiting to discharge big supplies of diesel.”
Otedola also maintained that some competitors who feared losing lucrative importation privileges and subsidy earnings were behind the misinformation. He explained that to dispel the rumours, he proposed that the presidency sponsor adverts in national newspapers to publicise the availability and pricing of diesel. He said the step he took convinced Obasanjo, which made him stand by the policy and dismiss the claims of his competitors.
The deregulation of diesel in 2004 marked the first time a petroleum product in Nigeria was completely freed from subsidy, a move Otedola says dismantled entrenched rent-seeking in the sector.
“Obasanjo was a determined and robust president. Jealous people did not easily sway him.
Once he made up his mind that someone was trustworthy and genuine, as he seemed to do about me that day, he stopped listening to the naysayers,” he concluded.
