In 2008, a shipment containing one million tons of diesel set sail, heading for the shores of Nigeria. The owner of the vessel, Femi Otedola, Chairman of Forte Oil, a petroleum and power generation company, had grown the company to one of the largest in Nigeria, with over 500 gas stations, according to Forbes. The growth had been rapid and profits were at an all-time high. Then disaster struck.
“I had about 93 percent of the diesel market on my fingertips. All of a sudden oil prices collapsed and I had over one million tons of diesel on the high seas and the price dropped from $146 to $34,” says Otedola.
That was only the beginning of his problems. The naira was subsequently devalued and interest began to skyrocket. When the dust settled, Otedola had lost over $480 million due to the plunge in oil prices, $258 million through the devaluation of the naira, a further $320 million due to accruing interest and then finally $160 million when the stocks crashed.
“I had two options, either to commit suicide or to weather the storm. I decided to weather the storm. I just knew it was a phase I had to go through. You see God prepares you for greater things and of course experience is the best teacher so I had to learn my lessons. I took the bitter pill,” he says.
Otedola was now $1.2 billion in debt. He sought solace in the only thing that had set him on the path to discovering oil, destiny.
“You cannot compete with destiny, so it was my destiny to make billions every month and lose billions as well. I said to myself ‘I was not going to have friends and enemies, I was only going to have competitors.”
At the age of six, Otedola had already discovered his knack for business. He would provide manicure and pedicure services to his father and his friends and write them a receipt for payment. On his birthday, while all his friends wanted toys, Otedola asked his father for a briefcase instead. His father, Michael, as the Govenor of Lagos State, was a respected man. Now, his son’s public fall threatened to destroy that name.
“After I lost the money, something that struck me was that my father had always been my role model in life and the first thing I had to do was to protect his name. He had a policy; honesty was the best policy, so I had to protect that name and his integrity.”
Just after the global banking crisis had struck, the Nigerian government established the Asset Management Corporation of Nigeria (AMCON) to buy up distressed loans. Otedola’s loan was sold to AMCON, by the bank he blamed for his demise.
“Experience is the best teacher. I didn’t have a proper structure and I also put the blame on the banks for not advising me. All they were interested in was the profits. They were not interested in sustainability of the business, they were short-sighted and all they were interested in was throwing money at me. So they never advised me,” says Otedola.
The banks had to shave off about $400 million from the debt leaving Otedola $800 million in the red. AMCON offered him a restructuring deal, which Otedola declined. He opted instead to repay what he owed and start all over again.
“So we got a reputable firm to value my assets. I had about 184 flats, which I gave up. I was the largest investor in the Nigerian banking sector, which I gave up, I was also a major shareholder of Africa Finance Corporation and I was the chairman of Transcorp Hilton. I was a shareholder in Mobil Oil Nigeria Limited, the second largest shareholder in Chevron Texaco, Visafone and several companies which they valued, and I had to give up to repay the debt.”
Otedola was left with two properties, his office space and a 34%-stake in African Petroleum, which he rebranded, to Forte Oil in 2010. In 2014, Otedola bounced back to reclaim his place on the FORBES rich list and currently has a net worth of $1.8 billion according to the FORBES wealth unit in the United States. These days, he is much wiser; there are systems in place to prevent a similar collapse of his mammoth oil empire.
According to the mogul, the day he lost everything was the day he learned his biggest lesson. It taught him that he could overcome anything.
My Worst Day with Ghana’s Waste Management Mogul
Ghana’s waste management mogul, Joseph Siaw Agyapong has built one of the most innovative enterprises in the country providing employment for over 250,000 employees in Ghana.
Everything was going well until an accounting error led to the worst day in his business life.
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My Worst Day With Atedo Peterside, Founder Of Stanbic IBTC
Atedo Peterside is one of the most respected bankers in Nigeria.
At 33 he built a billion dollar business and became founder of Stanbic IBTC Bank Plc.
But it has not all been smooth sailing.
Just at the apex of his success, his organisation was hit with a scandal that threatened to not only upend his impeccable reputation but that of the bank he had spent his whole life building.
Catch this exciting episode in an all new season of My Worst Day with Peace Hyde.
Watch the full video below.
Burned But Not Broken; The Tale Of Fiery fashion
Don’t be fooled by his infectious smile and designer clothes; beneath his tough exterior is a layered story of depression and despair.
On a rainy autumn morning in Johannesburg in March, we meet Adrian Furstenburg in the small affluent suburb of Parkhurst.
Ironically, he is dressed in black – a symbol of grief – to recount the day when his design studio, including stock and equipment worth R70,000 ($5,800), burned and was razed to the ground.
“The damage was so painfully clear in the bright, winter morning light,” says Furstenburg.
To get to this story, it is important to start from the beginning.
Furstenburg was only four years old when he first said he wanted to become a fashion designer.
“I was at my granny’s house and we were watching a fashion show on television, and as we were watching, that is when I decided that this was what I wanted to do with my life,” says Furstenburg.
However, his father, a farmer, had, other plans – he wanted him to pursue law.
Somehow, Furstenburg found a way to persuade his father to allow him to enter a career not so distant from the fashion industry.
“It was the early 2000s and it was pretty cool to study graphic designing, so he said ‘that’s okay, I will pay for you to study graphic designing’,” he says.
In his last year at college, he specialized in textile design, which led to him crafting a career as a handbag designer.
“I think that is one of the wisest decisions that I have ever made, there are definitely no regrets,” says Furstenburg today.
As part of a college assignment, he was required to do a practical project.
“I weaved this beautiful piece of fabric and then I actually made a handbag. This project is where my passion for handbags started,” he says.
After he graduated, he started freelancing as a designer and stylist, set on his journey of one day being a fashion mogul selling swanky handbags.
But his worst day was lurking around the corner, ready to throw him into a state of melancholy.
It was June 6, 2012.
“The day isn’t etched into my memory. I recall it from a much deeper, more visceral part than that,” he says.
He and his business partner at the time, Nkululeko Msibi, of 2souls clothing, had recently set up a small studio just off Gandhi Square in central Johannesburg, where they produced every kind of clothing and accessory to keep their bank balances and ambitions afloat.
“We landed one of our biggest projects producing costumes for a major dance production. We spent hours planning, designing, sourcing, selecting, sewing, stitching. Their budget was strict and the schedule was even tighter with virtually no room for error,” says Furstenburg.
But a disaster that would discredit him and Msibi was about to blaze through their studio.
Furstenburg was picking up materials from a supplier before heading to the studio that Wednesday morning when he received a frantic phone call from Msibi.
“Fire was really the only word I got from the conversation,” says Furstenburg.
He describes how surreal everything felt in the bright, winter morning light when he arrived at the studio.
“The thick smell of smoke hung throughout the building. Inside the studio, sooty black licks ran up the walls where the fire had devoured our machines, stock and the rails of costumes for the production,” says Furstenburg.
This was just three days before they had to deliver the costumes to their client. They were also not business savvy-enough at the time to have insurance.
“We sat sobbing on the ashy floor. The nausea swam in my stomach as the reality of the situation gained momentum in my head.”
“I called the client, trembling. The shouting started on the telephone and didn’t stop until they left our charcoal pile with a few pieces that had escaped the flames while stored in another studio,” Furstenburg recounts.
They were livid – understandably so.
“They were so outraged, because I was dealing with their dream as well. It was a costume production. They had a look of utter hatred and disgust on their faces,” he says.
They lost the clients.
“I spent two weeks in a blur of fear and guilt… Almost no one trusted us with their work and the landlord suspected that we were to blame for negligence,” says Furstenburg.
He went home, depressed for weeks, not knowing what his next move would be.
“I don’t have children but my business is my child. I have fought very hard for it. Seeing it die was the worst day of my life. I took about two weeks where I didn’t know if I was going to be able to do this anymore,” he says.
Fortunately, it was soon established that the fire was caused by old wiring. They salvaged what they could and Furstenburg decided to change his focus from production to styling – that is how he slowly managed to recover from what was his worst day.
He started from scratch, working on freelance projects making very little money.
“It was far from ideal and barely sustainable but somehow my resolve strengthened not to allow this incident to raze me permanently,” says Furstenburg.
The passion for designing handbags ignited within, in 2013, he equipped himself with business training at the Branson Centre of Entrepreneurship.
When he completed the three-month training, the center placed an order with him for 70 small, original-design messenger bags to be given as gifts to guests at an event held during one of FORBES AFRICA cover stars Richard Branson’s visit to South Africa.
“It could be said that someone else spotted what I had to offer before I had known exactly, and acting perhaps more in response to a veiled instruction than personal confidence at the time, I started making bags,” he says.
“Amusingly, whatever I might have lacked in self-belief was effectively offset by a desire to wow anyone and everyone and so I almost simultaneously entered the Independent Handbag Designer Awards of that year [in New York],” says Furstenburg.
It took four years of applications before he was accepted in 2016 into the All About the Logo by Guess Handbags category. He was the first South African applicant accepted – and the first to win. This opened doors for him locally and internationally.
Furstenburg is currently working on a procurement deal with an international airline. If successful, it will be the golden game changer that takes his business to the goal of netting an annual profit of $1 million by 2019.
Six years after his worst day, Furstenburg is not without challenges. But he is continuously taking it one step at a time, ensuring that the fire he has for designing world-class handbags never burns out.
“I must admit that I get a little breathless reflecting on the trajectory that the business has followed in the last 15 months, not least because of the risks we’ve survived and the gratitude I feel to those who’ve guided and supported me,” he says.
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