Otedola Reveals How Obasanjo Blasted Him At 2am Over Diesel Deregulation Drama

Nigerian billionaire Femi Otedola has revealed a tense clash with former President Olusegun Obasanjo in 2004 over the deregulation of diesel importation — an episode so heated that Obasanjo accused him of misleading the presidency into the policy.

The oil magnate recounts the incident in his memoir, Making It Big: Lessons from a Life in Business, set for release on August 18, 2025, by FO Books.

According to excerpts published by TheCable, Otedola — who then owned Zenon Petroleum — had convinced Obasanjo that the private sector could fully meet Nigeria’s diesel demand without the involvement of the NNPC, which at the time sold imported diesel below market rates and collected subsidy reimbursements.

“When President Obasanjo deregulated diesel in 2004, Zenon took an unassailable lead in the market,” Otedola wrote. “My opponents told the president we’d turned the market upside down, that there was no diesel, that the economy was about to collapse. He became furious because he had sought assurances from us that NNPC’s exit would not disrupt supply.”

The situation escalated when rivals told Obasanjo there was nationwide scarcity, trucks were grounded, and industries were shutting down. Otedola recalls receiving an irate 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!”

Otedola said he flew to Abuja the next morning, only for Obasanjo to “fly into a rage again” as soon as they met. “What kind of rubbish is this? What kind of nonsense is this?” the president reportedly shouted.

He told Obasanjo the reports were false and that he had six ships waiting to discharge large diesel shipments, even incurring demurrage due to delays. To counter the misinformation, he suggested placing front-page adverts in national newspapers showing diesel’s availability and price to reassure the public.

Otedola alleged that opposition came from figures within the NNPC who resisted deregulation to protect their subsidy profits. He added that once Obasanjo was convinced of his honesty, “he stopped listening to the naysayers.”

The 2004 deregulation marked the first time a petroleum product in Nigeria — diesel — was fully freed from subsidies, ending the rent culture tied to its importation.