How N220bn Debt Inspired My Philanthropic Efforts - Billionaire Businessman, Otedola Opens Up

Billionaire businessman and philanthropist Femi Otedola has revealed that a vow he made to God during a period of overwhelming debt inspired him to commit billions of naira to humanitarian causes.

Otedola shared the details of his plight and philanthropic efforts in his new book, ‘Making It Big: Lessons from a Life in Business’, launched on August 18.

In chapter 22 of the book titled ‘Cheerful Giver’, Otedola said in 2009, three Nigerians — Steve Omojafor, Molade Okoya-Thomas, and Sena Anthony — visited his Ikoyi home to solicit financial support for the take-off of Augustine University in Ilara-Epe, Lagos.

However, he couldn’t help at the time due to his debts.

“Gentlemen and madam, I am not in a position to help because I have a debt of N220 billion around my neck,” Otedola recounted telling them.

“When they departed, I went to my room and cried. I was weeping because they had come with what I saw as an appeal from God. And resolved that at some point, if and when I was able, I ought to help with the development of Augustine University. I beseeched God: ‘Please, give me another break. If you do, I am going to build this school.’ It was a vow that came from the depths of my soul.”

FROM INDEBTEDNESS TO A LIFE OF PHILANTHROPY

Reflecting on his journey from debt to philanthropy, Otedola said his troubles unfolded like a nightmare on live television, one he believed his critics enjoyed watching.

The businessman said his experiences are now seen as valuable lessons and blessings.

“It was a startling revelation for my visitors, because apart from the banks we owed and a select few insiders, my desperate position was still a secret. I wanted to keep a lid on it, in the hope of convincing my creditors to give me one more chance to work through rebuilding my business and future. Sadly, the press was already on the story,” Otedola said.

“Just about a week after the meeting with that eminent trio, the Next newspaper broke the story of my misfortune. Its eye-catching headline, ‘Femi Otedola’s sinking empire and his floating 12 million yacht’, upended my world. Adorning the front-page story was a picture of my yacht, with a subheading: ‘The sharks smell blood, and they are circling’.

“As soon as Next broke the story, others feasted on it. One of the banks I was indebted to gleefully gave interviews to every paper and broadcast outlet. They stripped me bare, splashing my picture on their front pages with morbid delight.

“The news blared from TVs and radios. They even dragged my wife and children into the fray because they were directors at Zenon. We all suffered. Today, we can appreciate the lessons learned and count our blessings, but back then, it was a horror story playing out on prime-time television. I’m sure my detractors watched with delight, over popcorn and cold drinks.”

Otedola said after he recovered financially, he fulfilled the promise.

“After consultation with the authorities, I agreed to fund the engineering school complex to the tune of N2 billion. I provided the first tranche in 2017. They received sign-off from the archbishop and the University of Lagos, which provided the designs and technical advice,” he wrote.

But Augustine University was not the only beneficiary of Otedola’s philanthropy. His book lists over 20 significant donations spanning years.

MAJOR DONATIONS

1. N200m ($1.4m) to Sir Michael Otedola Scholarship Awards for indigenous students (2004–2008)

2. N300m ($2.5m) for the construction of the National Ecumenical Centre, Abuja (2005)
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3. N25m ($178,571) for the construction of Abuja Central Mosque (2006)

4. Over N75m ($535,714) to Ilorin Central Mosque (2007)
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5. N100m ($574,713) to the Michael Otedola College of Primary Education, now Sir Michael Otedola University of Education, 2009

6. N50m ($26,408) to Christ the King Catholic Church (2010)

7. N100m ($543,478) to the University of Port Harcourt (2011)

8. Over N10m ($57,471) for the construction of Our Lady of Perpetual Help, Victoria Island (2017)

9. N100m ($255,141) to Lagos State Security Trust Fund (2017–2019)

10. Over N10m ($57,471) to the renovation of Holy Cross Cathedral, Lagos Island (2018)

11. N391m ($1m) for the establishment of the African Centre, New York (2019)

12. N65.6m ($130,000) for medical treatment of Victor Olaotan (2019)

13. N19.5m ($50,000) to the medical treatment for Christian Chukwu (2019)

14. N20m ($39,682) to the medical treatment for Peter Fregene (2020)

15. Over N10m ($17,695) to the medical treatment of Sadiq Daba

16. Over N17m ($29,930) to the medical treatment of Prof Daramola (2021)

17. Over N15m ($26,408) to the medical treatment of Kayode Ajala (2021)

18. N7.5m ($8,695) to the medical treatment of Charles Bassey (2021)

19. Over $5,500 to the medical treatment of Majek Fashek in London (2021)

20. N2bn ($2.1m) for the construction of the faculty of engineering, Augustine University, Ilara-Epe (2023)

21. N1bn ($1.1m) to the Renewed Hope Initiative (2023)

22. N1bn ($1.2m) to scholarship donations to all 750 students of Augustine University for the 2023/2024 academic year (N1m each)

23. N140m to furnish Augustine University’s engineering faculty building

24. N100m to the installation of street lights and a standby generating set at Augustine University campus

25. N22m ($19,130) for yearly scholarships for students from nursery to university level

26. N1bn ($1.2m) to Lagos State Security Trust Fund (3rd donation)

On Thursday, a day after the launch of Otedola’s book, it climbed to the top echelon of Amazon’s bestseller list.