Meet AbdulWasiu Sowami, Silent Billionaire Who Paid Otedola $250 Million to Acquire Ardova
- Nigeria's AbdulWasiu Sowami was relatively unknown until a court order asked him to pay Otedola $19 million
- The money was for the completion of the sale of Forte Oil, owned by Otedola
- Sowami is a strong player in the oil and gas industry in Nigeria and was licensed to lift crude oil by NNPC
On May 12, 2023, the news was rife that Ardova Plc, formerly Forte Oil, had paid Femi Otedola about $19 million to complete the acquisition of the oil firm.
The money was an arbitration fee that a court ruled against Sowami to be paid to Otedola for acquiring Forte Oil, according to reports by ThisDay.
Source: Getty Images
The beginning of a troubled investment
It was reported that in 2020, Sowami began acquiring Forte Oil via his investment portfolio company, Ignite Investments and Commercial Limited.
PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!
Sowami had instituted proceedings seeking to set aside the payment of the balance of $20 million accrued to Otedola following his acquisition of Forte Oil, now Ardova.
However, the arbitrator ruled in favour of Otedola with the award of $19 million against Sowami.
For many, the ruling was the first time they would hear of AbudWasiu Sowami.
Enter Sowami, the silent billionaire
He is the Chairman of Ardova, the oil firm previously owned by another billionaire and business mogul, Femi Otedola, which he purchased in 2018.
According to BusinessDay, Otedola disclosed in 2018 that he planned to sell his controlling share in the company he founded.
Forte Oil was a strong player in downstream petroleum marketing, upstream service, and power generation.
Reports say Otedola wanted to divest to explore the downstream business and opportunities in refining and petrochemicals.
He had a controlling state of 75% in Forte Oil which he transferred to Sowami's Prudent Energy.
How he purchased Forte Oil from Otedola
Sowami subsequently changed Forte Oil to Ardova in February 2020 after he agreed with shareholders during a meeting in 2019.
Reports swirled that Otedola got $250 million from Sowami for selling Forte Oil.
Sowami's Prudent Energy made another acquisition with the purchase of Enyo, another petroleum marketing company.
The newly purchased Enyo boasted 95 petrol stations across Nigeria.
Sowami's Prudent Energy is one of the local companies licensed to lift Nigerian crude oil.
In 2018, the Nigerian National Petroleum Company Limited (NNPC) granted Sowami's company and 31 others the license to lift 950,000 barrels of crude oil in a two-year contract from July 2018 to June 2020.
The graduate of Sociology from the University of Maiduguri holds a Masters's Degree in Corporate Governance from Leeds Beckett University in the UK.
He began his career with Besse Oil and Services and later moved to Cosmos Oil Limited and Ignite Energy Limited.
A strong oil and gas player in Nigeria with foreign flare
He developed relationships with renowned international trading firms, including Vitol, Shell Trading Rotterdam, Glebcore, and BP Oil International Limited.
Sowami is the Chairman of Ignite Investments and Commodities Limited, a firm facilitating finances for businesses, especially small and medium-sized enterprises, excluded from accessing money from banks due to a lack of collateral and property rights.
He owns Prudent Energy Limited, founded in 2004, and prides itself as a leading player in oil and gas marketing and marine logistics.
He reportedly operates a depot in Oghara Delta State and owns fuel trucks and three vessels.
From oil and gas to power: The many businesses of Femi Otedola
Legit.ng reported that on April 10 and 11, Femi Otedola, the Nigerian Businessman, acquired about a 5.5% stake in Transcorp, a company with its hands in hospitality and power, among other things.
Otedola later confirmed in a tweet that he made the purchase which analysts say is worth about N6 billion naira.
Transcorp filed a notice last week with the Nigerian Exchange Limited, disclosing that Otedola bought 2,245,639,251 units of the shares of the group, amounting to a 5.52% stake.
Source: Legit.ng
