Nigerian businessman Femi Otedola‘s net worth has plunged from $1.8bn to $550m, following a massive drop in the stock price of Forte Oil, the Nigerian Stock Exchange-listed petroleum marketing company, Forbes reports. . . 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 $1.3bn off the value of Otedola’s fortune which was pegged at $1.8bn in March. . . 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 N2.80bn ($8.8m) for the third quarter ended Sept 30 2016 as against N4.28bn ($13.5m) 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.
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