Fiery Clash Over Diesel Deregulation: Otedola and Obasanjo’s 2004 Showdown

Nigerian billionaire Femi Otedola has revealed a fiery confrontation with former President Olusegun Obasanjo over the deregulation of diesel importation in 2004. In his forthcoming memoir, Making It Big: Lessons from a Life in Business, due for release on August 18, 2025, Otedola recounts how Obasanjo angrily accused him of misleading the government into deregulating diesel supply, which supposedly led to a nationwide shortage.

Otedola, then chairman of Zenon Petroleum, had persuaded Obasanjo that the private sector could efficiently meet the country’s diesel demands without the Nigerian National Petroleum Corporation’s (NNPC) subsidized involvement. Following the deregulation, Zenon quickly dominated the market. However, opponents of the policy spread rumors to Obasanjo claiming the market was thrown into chaos, diesel was scarce, trucks couldn’t move, and industries were shutting down.

In the middle of the night, Obasanjo called Otedola, shouting insults including “You’re a stupid boy! God will punish you! You persuaded me to deregulate diesel, and now there’s no diesel in the country!” The next day, Otedola flew to Abuja, where Obasanjo confronted him in person with rage. After allowing the president to calm down, Otedola explained that there were six diesel shipments waiting to be discharged and that he was even paying demurrage fees due to delays. He insisted the diesel scarcity was a fabrication by vested interests within NNPC and rival marketers seeking to maintain subsidy benefits.

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To clear the air, Otedola proposed that the government advertise diesel availability and pricing in national newspapers to reassure the public. He praised Obasanjo’s leadership, noting that the former president, once convinced of Otedola’s honesty, disregarded naysayers and stood firm in his decisions.

This episode highlights the challenges faced during a crucial policy shift away from subsidy-driven fuel importation towards deregulation aimed at opening up the market to private sector efficiency. Otedola’s memoir promises to share further insights into his business journey and the lessons learned through setbacks and triumphs in the Nigerian energy sector.

Making It Big will be officially launched on August 18, 2025, offering an in-depth look at Otedola’s rise in business, including this dramatic moment in Nigerian economic history.