Femi Otedola‘s net worth drops from $1.8 Billion to $550 Million (See details)

Nigerian businessman Femi Otedola‘s net worth has plunged from $1.8
Billion to $550 Million following a massive drop in the stock price of
Forte Oil, the Nigerian Stock Exchange-listed petroleum marketing
company.
As at the close of trading on Friday, Forte Oil’s share price plunged to
a one-year low of N145 ($0.44) per share, down from an all-time high of
N342 ($1.1) in March this year when Forbes published its annual ranking
of the world’s richest people.

Apart from the tumble in Forte Oil’s stock price, Otedola’s fortune has
also been adversely affected by a central bank devaluation of the Naira
in June. In dollar terms, the devaluation in addition to Forte’s
floundering share price has knocked about $1.3 billion off the value of
Otedola’s fortune which was pegged at $1.8 billion in March.

Otedola, who is Forte Oil Plc’s Chairman, is now worth only $550 million
as at the close of business of Friday, according to the FORBES’
billionaires’ database.

Femi Otedola was unavailable for comments. However, an analyst at a
Lagos-based Investment bank hinted that the share price drop may not be
unconnected to the current recession in Nigeria that has witnessed 2
consecutive quarters of negative growth with inflation soaring to levels
as high as 17%.

Investors are dumping Forte Oil’s shares as a result of wide-spread
disappointing results of Nigerian Companies of which Forte Oil Plc is
also not immune. The company’s profit after tax was down at N2.80
billion ($8.8 million) for the third quarter ended Sept 30 2016 as
against N4.28 billion ($13.5 million) for the same period in 2015.

Sources also attribute the results to reduced demand for energy
consumption as a result of the recently increased pump price which has
adversely affected the fortunes of oil marketing companies in Nigeria.

Source: Forbes