The downsizing of the nation’s wealth by the ongoing recession has also affected Nigerian oil tycoon and Chairman of Forte Oil Plc, Femi Otedola, as he falls off his billionaire status.
In March this year when Forbes published its annual ranking of the world’s richest people, Femi Otedola’s net worth was ranked at $1.8 billion. However, Mr. Otedola has lost a whopping sum of $1.3 billion in the past few months and is now estimated at $550 million only.
This is as a result of a massive drop in the stock price of his petroleum marketing company. Forte Oil’s share price was at N145 ($o.44) per share down from an all-time high of N342 ($1.1) in March 2016, Forbes said in a new release.
Otedola’s fortune was also affected by the devaluation of the Naira in June by the Central Bank of Nigeria (CBN) and the current database of Forbes’ billionaires’ reads $550 million as Femi Otedola net worth.
“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.
The affected Business magnate has so far kept mute about the recent development and his current status. However, an analyst at a Lagos-based Investment bank hinted the obvious truth; the share price drop is connected to the current recession in Nigeria which has witnessed 2 consecutive quarters of negative growth with inflation soaring to levels as high as 17%.