The Billionaire Playbook: What Tony Elumelu and Femi Otedola Teach Us About Building Wealth in Africa

Let me start with a question that every entrepreneur in Ghana should ask themselves. Are you a builder or a trader? Not in the literal sense. In the strategic sense. Do you buy assets and hold them forever, building institutions that last generations? Or do you enter businesses, restructure them, realise value, and move on to the next opportunity? There is no right answer. Both approaches have made billionaires. Both have shaped the Nigerian economy. And both are embodied by two of Africa's most influential businessmen: Tony Elumelu and Femi Otedola.

For much of the past year, Elumelu and Otedola have remained at the centre of some of Nigeria's biggest corporate transactions. Elumelu, chairman of United Bank for Africa and Transcorp, is preparing to assume the chairmanship of Seplat Energy after his investment vehicle acquired a 20.07 percent stake in the oil and gas producer. Otedola, meanwhile, has sold his controlling interest in Geregu Power, increased his investment in First HoldCo, and announced plans to redirect part of his capital towards the Dangote Petroleum Refinery. Their recent moves reveal two contrasting approaches to building wealth and corporate influence. And both offer valuable lessons for anyone who wants to build something that lasts.

Let me break down their strategies, because the differences are instructive per reports by The High Street Business

Tony Elumelu is an accumulator. His strategy is best described as institutional accumulation. He built his banking reputation by leading investors who acquired the distressed Crystal Bank in 1997, renamed it Standard Trust Bank, and merged it with UBA in 2005. The merger placed Elumelu at the helm of UBA, which later expanded into 20 African countries and major financial centres, reporting total assets of 33.2 trillion naira, about 24.3 billion dollars, in 2025. Elumelu left the chief executive role in 2010 under a Central Bank of Nigeria tenure policy. But rather than dispose of his banking interests, he established Heirs Holdings and expanded into other industries. His investments now form an interconnected network. UBA provides financial reach. Transcorp offers exposure to power and hospitality. Heirs Energies holds oil and gas assets. Elumelu does not sell. He accumulates. He connects. He builds institutions.

Femi Otedola is a recycler. He has pursued a more rotational strategy. He built his early fortune through commodities and petroleum distribution, establishing Zenon Petroleum before taking control of African Petroleum and renaming it Forte Oil. After restructuring the business and expanding into power generation, he sold his 75 percent stake in Forte Oil in 2019 for 66.25 billion naira, about 215 million dollars at the time. His attention subsequently shifted from downstream petroleum distribution to electricity generation through Geregu Power. In 2025, he sold control of Geregu in a transaction valued at about 750 million dollars. Otedola said part of the proceeds would be invested in the planned offering of the Dangote refinery. "That's one of the reasons why I sold my stake in the Geregu plant to come and invest my proceeds in the IPO of Dangote Refinery," he said in May. The sequence captures his approach. Enter a strategic sector. Restructure the asset. Realise value. Redeploy capital.

Their banking power bases also reflect their different classs. Elumelu's influence rests on UBA, where he directly and indirectly holds a significant stake. He rose through banking operations before becoming an owner and chairman. Otedola approached banking as an investor rather than an executive. He began accumulating shares in FBN Holdings, now First HoldCo, in 2021 and became chairman in January 2024. His direct and indirect holdings have continued to grow. Elumelu built from inside. Otedola bought from outside.

Where did their paths cross? In 2023, Otedola acquired a 6.3 percent stake in Transcorp, the conglomerate chaired by Elumelu. Elumelu publicly welcomed the investment. But both men later adjusted their positions. Elumelu's investment vehicle increased its holding. Otedola sold his roughly 6.3 percent stake. Otedola subsequently said he believed in competition but added that "two captains cannot man a ship." The episode showed how closely their business instincts overlap and how quickly personal relationships can be tested when control of a strategic company is at stake.

Their movements through oil and power have been in opposite directions. Otedola moved from petroleum marketing into power, developing Geregu into a listed electricity company before selling control and preparing to return to oil through the Dangote refinery. Elumelu entered power through Transcorp's acquisition of electricity assets, including the Ughelli power plant, before expanding into oil and gas through Heirs Energies. In late 2025, Elumelu's group acquired a 20.07 percent stake in Seplat for about 496 million dollars, making it the company's largest shareholder, just as Otedola exited Geregu Power in a deal valued at about 750 million dollars. One was deepening his exposure to oil and gas. The other was freeing capital for his next investment.

Their philosophies were shaped by very different beginnings. Otedola was born into one of Nigeria's prominent families. His father was a businessman and journalist who served as governor of Lagos State. The younger Otedola began working in his father's printing business before entering petroleum trading. In his memoir, Otedola said his father lent him £250,000 to expand Zenon Petroleum. That family backing, however, could not shield him from market shocks. The 2008 financial crisis wiped out more than 1.2 billion dollars of his wealth through falling oil prices, naira depreciation, interest costs, and the stock market crash.

By contrast, Elumelu began his career as a photocopier salesman before entering banking, rising from an entry-level analyst to branch manager by age 26. His career has included significant setbacks, including an unexpected departure as UBA chief executive in 2010, a blocked 2.5 billion dollar oilfield acquisition, and production losses linked to crude theft at Heirs Energies. One started with privilege and lost a fortune before rebuilding. One started from nothing and built an empire. Both succeeded.

Elumelu describes his economic philosophy as Africapitalism: the belief that Africa's private sector must make long-term investments that create both profit and social value. "We have the power to make investment decisions," he said. His approach favours patient ownership, institution building, and investment during periods when difficult economic conditions discourage others. Otedola's method is more closely associated with timing, resilience, and capital recycling. His experience during the 2008 crisis shaped his willingness to reassess investments, recover from setbacks, and move when circumstances change.

Their philanthropic models also mirror their business philosophies. The Tony Elumelu Foundation uses a broad model, offering training, mentorship, and seed funding to selected African entrepreneurs. The foundation says it has funded more than 24,000 entrepreneurs. Elumelu calls the model "democratising luck." Otedola's giving has often involved large, targeted interventions. In 2019, he donated 5 billion naira through the Cuppy Foundation to support children affected by conflict in northern Nigeria. One backs large-scale entrepreneurship programmes. One focuses on substantial donations to selected causes.

Neither businessman has publicly outlined a detailed succession plan indicating whether family members will eventually assume operational control of their principal companies. Their major listed businesses remain professionally managed and governed through formal boards. The question of what happens after they step back is unanswered. For now, they continue to shape Nigerian and African business.

What can Ghanaian entrepreneurs learn from these two men? First, there is no single path to wealth. Elumelu accumulates. Otedola recycles. Both have billions. The key is to know your own class and stick to it. Do not try to be Elumelu if you have the temperament of Otedola. Do not try to be Otedola if you have the patience of Elumelu.

Second, setbacks are not endings. Otedola lost 1.2 billion dollars in the 2008 crisis and rebuilt. Elumelu was forced out of UBA and built Heirs Holdings. The difference between those who succeed and those who fail is not whether they experience setbacks. It is whether they get back up.

Third, control matters. Elumelu retains control of his core assets. He does not sell. He holds. Otedola sells, but he sells on his terms, at his timing, for his price. Both maintain agency. Neither is a passive investor.

Fourth, visibility and philanthropy are part of the strategy. Both men are highly visible public figures. Their foundations are extensions of their brands. They are not just building wealth. They are building legacies. That is a lesson for every entrepreneur who thinks that business is only about profit.

The billion-dollar playbooks of Elumelu and Otedola are not secrets. They are public. The question is not whether you can read them. The question is whether you have the discipline, the patience, and the courage to follow your own version. Build or recycle. Hold or sell. Both can work. The choice is yours. But choose. And then execute. That is what billionaires do. That is what you can do too.

Source Used: The High Street Business

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